Market structure alone won't make you money. You need to see price form a range outside the previous day's valuation, which means both buyers and sellers agree it's fair. Only then does a breakout signal real acceptance, not just price discovery.
Basic market structure is not enough. What I want to see is a range being formed outside of the previous day valuation, because that will tell me that both sides of the auctions, both the aggressive seller and the aggressive buyers, consider this to be a fair valuation of the asset. Because just a phase of price discovery doesn't mean price acceptance. This would be only price discovery. This is price acceptance. So in order to qualify a breakout, I wait for a range to form. And I would like to see this range formed either outside of this range or inside of this other distribution.
