The lesson on YouTube
Watch. Then work through the idea.
Watch the English lesson first, then use the worked example and quiz below to check the idea. The article is a companion, not a transcript.
Loading connects to YouTube and may transmit device data or use storage. Privacy details. Alternatively, watch on YouTube ↗.
What is actually happening?
The breakout did not remain outside according to your chosen confirmation rule. It does not prove that stops were deliberately hunted or that the opposite side will now reach a target.
Guided example · Synthetic short example · gross prices
A return below resistance
Separate the failed breakout from a new short setup and its execution.
Restart & example assumptions
Authored synthetic observations, shown in sequence. Every comparison uses only the revealed data. This is a worked learning example, not live prices, broker execution or a profitability backtest. Follow the article’s exact definitions; measurements and pattern names alone do not authorize a trade.
For charts: tap a candle or swing to inspect it; drag horizontally to browse; wheel or +/− to zoom; arrow keys to inspect; Home to restore the step view.
Make the conditions explicit.
Record a boundary and breakout rule in advance. Do not label every wick beyond an unmarked line a failed breakout after the fact.
Illustrative short rule: after a completed close above resistance, require a later close back below it. Evaluate a next-bar entry only if the separate short setup passes its own filters.
Cancel if price reclaims the level before entry, if the excursion high cannot support an acceptable stop distance, or if your session loss limit is already reached.
The quoted rules are illustrative research specifications. Parameters are not recommendations and have not been presented as profitable backtest results.
What can this cost?
The reversal is a new position. Include any loss on the initial breakout in the day’s aggregate risk rather than pretending the second trade starts a new budget.
How the idea can fail.
The return below resistance may be temporary. Price can rise again and invalidate the short premise.
Practical habit
Describe “close back below the level.” Do not invent who caused it or what they intended.
Go one level deeper
Count the first breakout and any reversal as separate rule sets in your journal. Avoid optimizing the combined story after seeing each day.
Check your understanding
Does a failed long breakout automatically authorize a short?
Further reading & boundaries
These examples are original educational exercises. General background: CME Group: position sizing; Fidelity: technical analysis. Neither endorses these example rules. No hypothetical result establishes future profitability.
Editorial revision: 13 October 2026 · Synthetic data · Educational use