
百萬Eric | Day Trader|Sep 05, 2025 10:37
In an uptrend, a breakout could be a real breakout or a fake one. The problem with chasing highs directly is that it's impossible to distinguish between the two at the moment, and jumping in recklessly can lead to pullbacks during a fake breakout.
A more cautious approach is to wait for a pullback confirmation. While not every breakout will offer a pullback, if the price pulls back and stabilizes at a key level, it indicates the structure has continuity, making entry at this point more reliable.
Structures with pullback confirmation have clear stop-loss levels, a more reasonable risk-reward ratio, and overall lower risk. These opportunities not only help manage risk but also provide a basis for adding positions.
Currently, SOL's daily chart pattern is highly similar to the structure shown below. If a breakout occurs, you can use the pullback confirmation logic to identify potential trading opportunities.
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