the hAndbook of technIcAl AnAlysIsassume that every time price tests a trendline or price barrier it will magically and
consistently rebound off it.
Unfortunately, professional traders and specialists are aware of this predictable
learned behavior or knowledge‐based attitude and as such may try to take advantage
of the situation by orchestrating a profitable false breakout. For example, traders will
short below a resistance barrier with a stoploss placed above it. The specialists will
then drive price through the resistance and trigger the stoplosses, forcing the shorts
FIgUre 25.1 Behavioral Aspects of an Uptrend.
FIgUre 25.2 Buy and Sell Orders as Building Blocks of Chart Patterns.