Breakouts fail often enough that many traders abandon them entirely. The issue is rarely the idea of continuation; it is the lack of a pre-defined invalidation and a measured target.
Our continuation rule set requires a prior base of at least five bars, a close beyond the boundary on expanding volume, and a first pullback that holds inside the breakout candle’s range. Without the pullback hold, we treat the move as a probe, not a swing.
Targets use the height of the base projected from the break. If that projection lands into a major opposing level, we reduce size or skip. Risk management is part of the setup, not an afterthought.
The Momentum Swing Clinic drills these rules on live charts so the filter becomes automatic under time pressure.