Ep192: Why You Fail at Breakouts (And How to Fix It)

Interestingly, crude oil at the moment is doing the opposite.

So about six, seven times out of 10, The breakout move on crude oil is a genuine breakout move.

So the first breakout on the inside, we've got lots of inside days and I'm on the futures on the stock indexes, those four charts on the left.

You can see that the day which includes the pre-market on the Russell there, we can see that the high there has been breached.

That typically is going to be a false direction.

Now what's not too obvious is that Friday's regular session highs have actually been taken out.

So if you look at the lower timeframes, you'll actually see the regular session high being taken.

Now we can see this on any charts.

It's also fractal.

You'll see it on a 60 minute chart, 30 minute chart, 5 minute chart.

But we can do this on Bitcoin as well.

We've got a nice inside day on Bitcoin after that.

We've got a huge pump higher.

And again, we've got the inside day that just takes out the low.

The reality is it flipped around intraday and we're probably going to see a continuation move develop on crypto.

We can see that Friday consolidation on Cougar.

There's lots of examples on Cougar in the last 20, 30 days.

There's very move inside day, move inside day.

Typically the side that it breaks is the breakout movement.

So we've seen that breakout move happen overnight.

as I'm recording this on Monday's pre-market from a break of Friday.

So ultimately these inside days, these consolidations, they act like a false break.