Description
Master the failed breakout trading checklist with Ian Coleman, an expert trader and analyst at FXStreet. This repeatable four-step process — location, break, reclaim, and follow through — helps you avoid the common mistake of shorting every new high or buying every new low. Instead of reacting emotionally to a single wick, you'll learn to identify genuine failed breakouts with a structured approach that works across forex, stocks, and cryptocurrencies.
First, you'll define clear location levels: significant previous highs, lows, or range boundaries that you mark before the move happens. Second, you'll confirm the break, ensuring price actually trades beyond your level — simply approaching resistance is not a failed breakout. Third, you'll wait for the reclaim: for a bearish setup, price returns below the broken high; for a bullish setup, price returns above the broken low. Fourth, you'll assess follow-through: does a retest hold? Does price move away from the reclaimed level? Does short-term structure begin to shift? This four-step filter gives you more evidence than a wick alone, reducing false signals and improving your risk-to-reward.
Ian Coleman's methodology is rooted in years of technical analysis at FXStreet, a leading provider of real-time forex news and market analysis. Whether you trade EUR/USD, S&P 500, or Bitcoin, this checklist provides a systematic framework for trading failed breakouts with confidence. Stop guessing and start trading with a repeatable process. Watch the full video to see each step applied to real market conditions.
Failed breakout trading checklist by Ian Coleman | FXStreet
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