The "pullback confirmation short" strategy after a failed breakout

Logic:

Many false breakouts will first surge with high volume beyond key levels, but are quickly pulled back into the range. If it is a true breakout, the price should stabilize; if the breakout cannot be maintained, it indicates that the long positions are trapped.

Approach:

Price breaks through key resistance with high volume

Retraces below the resistance within 2–3 candles

Volume significantly decreases during the pullback

Short when the pullback ends and weakens again

Stop loss: High point of the false breakout

Key point: High volume ≠ success; being unable to hold is the key.