Failed Breakouts - Market Analysis for Apr 23rd, 2020

If you are a 'Breakout Trader' you know the feeling. You see price push hard into a breakout level, you buy like nuts and then price teeters, slamming back into the range. You hit your stops. This is why I am a pullback trader. I learned the hard way. Well knowing this phenomenon you can capitalize,  with scalps and hedges.

Look at this chart of 'failed' break outs in Ether. 

This is why I put a short stop at $186.

1. It's below EW support. 

2. It's below the strongest candle where the chasing began, where some of those breakout chasers will feel underwater. 

Once my stop order pulls me in, I'll put my stop at the closest high wick. 

Food for thought. 

Note often, price just consolidates back in the range before the real deal.  

Screen Shot 2020-04-23 at 11.34.38 AM
Screen Shot 2020-04-23 at 11.34.38 AM
Ryan Wilday hosts the Cryptocurrency Trading service on ElliottWaveTrader.net.