$XNY just gave a textbook blueprint for trading breakouts and most traders still get it wrong.

I rarely walk through my process, but this one was too clean to ignore.

The chart says most of it, so here’s the breakdown...

Entering the breakout early carries more risk than you want to take. Very often, you get clearouts like this one (over 10% in this case) which wiped anyone on >10x leverage and took out most stops.

Structurally, this was a stop hunt on both sides before trend continuation.

From a scalping perspective, the most asymmetric play was catching the late longs flush, if:

- volume confirms capitulation (all liqs and stops)

- price reverts back quickly (using trapped late shorts as fuel)

- no bigger external risk (like $BTC dump yesterday)

I prefer catching the knife into the breakout and here the odds for continuation are high (never guaranteed), so I'll hold for longer.

But knife catching is risky, takes practice and requires quick execution (also massive balls), so most traders are better off waiting for a short consolidation to confirm it’s not retracing (or to avoid becoming the next victim of a final stop hunt / selloff).

Alternatively, you can wait for an actual breakout, then for a retrace to retest the local high before entering. Lowest risk... but sometimes you won’t get the retest, which is the price of playing it safe.