some appropriate wisdom at this level

I thought this might be appropriate to re post this again given that we are at clear support @ 2.2c, dont drop your bundle!

HOW TO PLAY 'FAILED FAILURES'

Twisted logic can devise very profitable trading strategies. For example, we're taught early in our careers to buy breakouts and sell breakdowns. But market contrarians pay their bills doing the exact opposite. They wait for a move to fail, and then sell the breakout or buy the breakdown. These mind-bending tactics don't end there. Many smart traders take it one step further and buy when the failure fails.

Let's back up and examine this way of thinking one step at a time. Most of us follow a common path -- we pile into stocks because they break out of resistance. But contrarians know exactly how you'll react when your pretty breakout drops like a rock. So they guess where your stops are hidden and enter short sales at the same price to capitalize on your misfortune.

Now twist your brain a little more and take this reasoning to the next level. The stock breaks out -- you sit on your hands. The stock fails the breakout -- you wait and do nothing. But when the stock jumps back above the breakout price -- you buy. Got it?

Modern markets try to burn everyone before they launch definable trends. My friend Bo Yoder calls this action a "rinse job." Whether through manipulation or mechanics, price gets drawn like a magnet through common support and resistance levels. This whipsaw movement cleans out the stops before a market ramps higher or lower. Not a pleasant experience when you're caught holding the bag, but an excellent opportunity when you come off the sidelines.

How does price action "know" where the stops are hidden? The answer is quite devious. Retail traders are well-versed in the basics of technical analysis. They take positions using common methods already deconstructed by the smart money. The result: Price passes through support and resistance far more easily than in the past. But keep your chin up. Whenever someone comes up with a new way to take your money, they also give you a new way to make it