Sequence
RangeBreakTrapReclaim failsRotation
Case study
Failed breakout: when the obvious move becomes the trap.
This case teaches how a clean-looking breakout can fail when acceptance does not follow, liquidity is swept, and late buyers are trapped above resistance.
What happened
Price pressed above a visible range high, triggered breakout orders, then failed to hold above the prior resistance zone. When price returned inside the range, trapped buyers became potential sellers.
What mattered
- No acceptance above the level.
- Breakout occurred into obvious liquidity.
- Retest failed to hold.
- Risk was defined by the failed reclaim.
StageQuestionEvidenceMistakeRule
BeforeWhere are stops?Equal highs above rangeAssuming breakout is cleanMap liquidity first
DuringIs price accepted?Weak hold above levelBuying after extensionWait for acceptance
AfterWho is trapped?Return inside rangeHolding hopeExit when invalidated