A breakout trader can get very frustrated when caught in price movements that can eventually be described as corrective. I have always found it difficult to trade corrective price structures (and V reversals). I have modified my style to try and get in earlier, before the obvious breakout, so that I am in profit (or BE) if the breakout fails.
IMO failed breakouts have the potential to be traded profitably. A failed breakout of a pivot low presents a signal to go long and a failed breakout of a pivot high presents a signal to short.
My source for the idea came from Trader Vic II, Principles of Professional Speculation. It evolved from his 2B rule. I am posting the idea to stimulate discussion and I am not currently using it.
Interested backtester's would have to first identify non trending price action and I would suggest looking at the pivots that are outside the bollinger bands first. Many of the entries are intraday which would be a challenge to backtest.
I have included a chart of GNS which has many good examples of this idea.