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The Market Never Lies, Never Fails

Notions like ‘false breakouts‘ are generally harmful to traders, because they presuppose that the market can try to do something. A move reverses and they say the breakout is ‘false’ or it ‘failed’ or whatever. Reality check…

The market does not fail to do anything. Ever! You were the one that thought it was breaking out and you were wrong. It happens, get over it. And get in the right mindset: you are trying to predict the natural evolution of price, and you won’t always get it right. Getting it right more often is a good idea if you want better returns. Telling the market it was the one that ‘failed’ is just pissing in the wind.