Advanced chart reading
The idea
A breakout crosses a defined boundary. Whether it continues depends on subsequent orders, liquidity and context. A false break returns into the prior range under a rule you define in advance. Waiting for confirmation can reduce some false starts but may increase entry distance and reduce reward relative to risk.
A worked example
A close outside a range and a later retest are two different entry rules. Their fills and stop distances should be tested separately.
Try it yourself
Define a breakout in exact terms and review at least twenty historical candidates without skipping losing examples.
A mistake to avoid
Changing from a breakout trade to a range trade to avoid admitting invalidation.