Here’s what messes me up:
A strong breakout at the START of a trend looks identical to a strong breakout at the END.
Same sharp move up. Same heavy volume. Same feeling of “this is taking off.”
But one is the beginning of a run. The other is the last gasp before it dumps.
They’re visually identical. That’s the problem.
The way I’ve found to tell them apart:
Watch what happens in the 2-3 days AFTER the breakout.
If volume stays high → probably realIf volume collapses → probably a trap
The breakout itself won’t tell you.
You have to wait and see if anyone actually shows up after the initial spike.
Got burned on this so many times before I figured it out.
The market’s cruelest trick: starts and endings look exactly the same
byu/Real-power613 ininvesting
Posted by Real-power613