IMUGENE CHART. TA only, page-30582

What Is a Failed Break?

A failed break occurs when a price moves through an identified level of support or resistance but does not have enough momentum to maintain its direction. Since some traders look to establish positions when a breakout occurs, in the breakout direction, they may opt to close those trades if the breakout fails.

Failed breaks may also signal traders to enter a trade in the opposite direction of the attempted breakout. Since the breakout attempt failed, the price could head the other direction.

A failed break is also commonly referred to as a "false breakout."

KEY TAKEAWAYS

• A failed break is when the price of a security moves beyond a support or resistance level (breakout) but then reverses course moving back below resistance or above support.
• A failed break is different than a throwback. A throwback is a short-term retracement back to the breakout point.
• Some traders opt to trade breakouts. Other traders wait for failed breakouts, and then trade in that direction (against the breakout).

evening

get ready for a flush out.