Market Breakout

Picking up where I left off, people are often confused by 3C signals and price behavior, such as now when price makes a breakout move. If you have been around long enough, you probably have observed that most reversals are preceded by a false breakout above a technically significant level, or breakdown in the case of upside reversals.

 Looking at the 1 min chart, we have a volume surge and a breakout through today's intraday highs.

Looking at an hourly chart, you can see this is a more important resistance level. Now we watch for signs of distribution into the breakout and ultimately a reversal below the breakout point, this is also a pretty accurate timing indication of a reversal.