When a market is balanced and breaks out

[Tobi]

When a market is balanced and breaks out only to fail and revert back to its recent range, there’s strong context to suggest further movement back in the direction opposite to the breakout.

This can be attributed to the fact that the push beyond the balance extreme has failed to find sufficient additional activity to break away from the balance so traders looking for a reversal can take some confidence from this observation and additionally, the fact that anyone playing the breakout will be feeling the heat and if they’re short-term traders, they’ll need to exit as the market reverses.

 

[magnus2022]

Trading is not for everybody and it's better you learn the strategies and master it before entering the market. Personally, i don't know much about the market and a whole lot of things there, i keep off from it.