How do I avoid chasing breakouts?
Wait for a candle body to close beyond the level, then wait for price to come back and retest it. Enter on the hold of the retest with a stop on the other side of the level, and check that volume supported the break.
Chasing happens when you buy the first spike through a level because you fear missing out. You end up buying the high of the move with your stop far away.
A calmer approach has three checks. First, a body close beyond the level, not just a wick poking through. Second, volume on the breakout candle that is clearly above recent average — real participation. Third, a retest: price pulls back to the broken level and holds it.
The retest gives you a defined place to be wrong. If price closes back inside the old range, the breakout failed and you exit small.
Some breakouts never retest. That's fine — missing a trade costs nothing, while chasing a failed breakout costs money. A written rule such as 'no entry more than X% above the level' helps.
Practice this in a simulator by replaying past breakouts and marking where a patient entry would have been.
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