Really solid example of how channel breakouts often retest resistance AFTER resistance has already been broken. I like to think of it as testing the buyers and supply/demand zone to see if resistance can now act as support which would confirm another leg up as we see in Uber.
Good rule to follow is to not enter trades as soon as they breakout from a channel as the trend reversal is not confirmed by anything yet. we can see multiple channel breakouts where price did not continue rising once the channel was broken.
Volume confirmation (increaising volume with increasing price) is also important when identifying true breakouts, nice highs when lower than average volume is generally a sign of price disparity defined as divergence.
Good rule to follow is to not enter trades as soon as they breakout from a channel as the trend reversal is not confirmed by anything yet. we can see multiple channel breakouts where price did not continue rising once the channel was broken.
Volume confirmation (increaising volume with increasing price) is also important when identifying true breakouts, nice highs when lower than average volume is generally a sign of price disparity defined as divergence.
