failed auction - identifying strength Where price has previously...
Luckshury@Luckshuryy
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Apr 23, 2025
~1 min read
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failed auction - identifying strength
Where price has previously found consistent support & clearly indicated as a range low, I would look for a failed auction.
Price losing this level and spending time below it, allowing breakout traders to enter with new shorts and triggering stops, only to then quickly reclaim the level, is considered a failed auction.
The key is paying attention to new shorts entering below the range lows who are then forced offside upon the range low reclaim.
example ↓
Where price has previously found consistent support & clearly indicated as a range low, I would look for a failed auction.
Price losing this level and spending time below it, allowing breakout traders to enter with new shorts and triggering stops, only to then quickly reclaim the level, is considered a failed auction.
The key is paying attention to new shorts entering below the range lows who are then forced offside upon the range low reclaim.
example ↓