Kardec Trader argues against trading preset breakout levels. Instead, watch how price actually responds at those levels: who's hitting the bid and ask, whether buyers or sellers control the action, and what story that tells you before you trade.
And I see a lot of traders do this. I'm not really a big fan of it. They'll say, I'm going to go long if the stock or instrument breaks this level. I'm going to go short if the stock or instrument breaks this level. I don't like to look at the market that way. I like to look at the market from a perspective where I want to pay attention to how price responds here. How does price respond here? Do we get passive buyers stepping in? Do we get aggressive sellers step in? Like what happens around these levels? What happens with the buyers and sellers activity? Who is more in control? Who is more aggressive? Who is consistently hitting the bid? Who is consistently hitting the aspect? I like to pay attention to that to get the storyline.
