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Can we really predict breakouts? Well, kind of. Although we will never know what is going to happen BEFORE it will happen, there are certain clues that will help us identify high-probability potential breakouts.
In my trading, I call this pattern the “lower bounce” and although it seems like such small detail, it can improve your chart reading significantly. This pattern also builds the foundation for many of the setups that I trade (join our courses for free for the first time ever: free Tradeciety courses).
How does price trade into a level?
You should always ask yourself this question from now on. How the price trades into a specific support or resistance level can actually tell you a lot about what is going on behind the scenes. It will help us understand if the buyers or the sellers are gaining strength and where the market is likely to go next.
In the screenshot below, we can nicely see this principle at work. We are able to identify a solid horizontal resistan...
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