I have a rule: Never anticipate a breakout. I tried it so many times in the past and in most cases it did not worked out! The stock went sideways for a couple of days or immediately started to correct. Wait patiently for the right signal!
When most traders think of breakout trades, they think of big, dramatic winning trades. However, the trader actually trading breakouts quickly comes face-to-face with a harsh reality: false breakouts are more common than winning breakouts. This doesn’t means breakout trading concept is failure, and it is worthwhile to attempt breakout trades because exceptional reward/risk ratios can compensate for lower probability and provide a trading edge.
