Seeing we have so much action in the breakout threads, thought I would start one on what to look for should the breakout not eventuate or use as an entire play on their own (a play probably better to trade in this environment IMO).
There are two kind of these plays. Firstly, a false break, and then a break of that false break. I will concentrate on a false break, which is actually a fade pattern, meaning, you are going against the recent trend. Which allows for tight stops.
As you can see, price breaks the previous resistance high, then comes off (the false break), it then travels to retest the resistance (get any weak shorts out), before it truly falls off. If that secondary high, were to actually break the 'false break' high from previously, then it would be more likely to truly breakout (there is rarely a false break of a false break).
Break of false break plays can probably go on the breakout thread, as they are trend continuation, not trend reversal patterns.
Sorry do not trade shares anymore so don't spot the charts with these patterns, but this thread could potentially be used in the same manner as the breakout thread.
IMHO, these would be much more useful in a bearish environment. Along with break of false breaks of support, which would actually be downward breakouts.
On the false break pattern, your stop would go slightly above the false break level and your entry would be when it comes back through the previous resistance (or breakout level), now turned support. High (stopping) volume and a long wick on the false break, woud be preferable, but isn't necissary.
This thread came to me from everyone looking at breakout patterns in the breakout thread, whereby I was actually discussing with another member or two, how these were likely to be better played as false break patterns.
I'll be lingering more into the background of this forum, so hope this can be of some use.
Cheers and all the best with the trading.