The "Bank Breakout 2 Top" works exceptionally well on banking indices and stocks due to three unique characteristics:
Suddenly, a catalyst appears—perhaps positive economic data, lower interest rate expectations, or strong earnings. The bank index surges above the First Top on significantly higher volume. This is the initial breakout. However, instead of rocketing higher, the price stalls and drifts back down. This pullback is the critical element. The price must fall back to the original resistance line (now the "top" of the previous range) and find buyers. This retest can last from 1 to 5 days. bank breakout 2 top
The retest phase is volatile. Institutions will "shake the tree" by pushing price slightly below the old top to trigger stop losses. If you place your stop loss exactly at the First Top (e.g., 46,000), you will be stopped out by a few points. Give the retest room of 1-2% below the level. The "Bank Breakout 2 Top" works exceptionally well
(Assume intraday, swing, or positional timeframes; adapt position sizing accordingly.) Confirmation Entry:
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Momentum Scaling:
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