Two similar highs, a completed support break and a failed recovery. Constructed candles illustrate the decision; the target remains a plan.
Watch on YouTube ↗Two rallies can stop at similar prices while the low between them still attracts buying. Selling the second high assumes those buyers will fail. The shape gives you a question to investigate, but it hasn't answered it yet.
That middle low matters because price already rose from it. Someone who missed the advance may welcome a return. Existing buyers may expect another rally. Near the highs, earlier buyers may take profit and new sellers may expect resistance to hold again. These are possible reasons for the opposing responses, not positions we can identify from candles.
What the neckline tells us
The support between the highs is often called the neckline. Treat it as an area selected from the earlier response, with enough width to describe that response honestly. A line drawn after the breakdown can make the pattern look cleaner than the decision was.
In the lesson, a completed candle closes below this support. Buying hasn't kept price above the area that supported the second rally. Buyers may have stepped back, or selling may have exceeded the buying available there. The close shows the failure. It doesn't identify its cause or guarantee another decline.
Price can still recover the area. That possibility is why a breakdown and an entry are separate decisions. A plan that sells immediately accepts a different risk from one that waits for a recovery to fail.
What the return adds
A bounce gives us another observation near the lost support. Earlier buyers whose positions moved against them may use it to leave. New short sellers may see a place to act close to where their idea would weaken. Buying could also recover the area and keep the range intact.
The video waits beyond the first touch. A bearish response finishes below the area before the illustrated short begins. That response adds evidence that the recovery couldn't hold. It still leaves a trade that can lose.
Chasing the first drop may put the entry farther from that failure point and closer to earlier buying below. Waiting can improve that relationship, but the bounce may never arrive. Missing a move is one possible cost of this rule.
Keep the plan tied to the same idea
The published revision illustrates an entry at 828, with a stop at 868 above the return high of 862 and a target at earlier support around 708. The planned distance to the stop is 40 units; the target is 120 units away, or 3R before costs. Those numbers describe the authored example, not settings for another market. The decline before the return also made a nearer swing low at 773. Buying could reappear there before price reaches 708. The practice exercise uses that nearer reference as its target, with 55 units of possible reward against 40 units at risk, or 1.375R before costs. It does not treat the full 3R source objective as clear space.
A sustained recovery through the return high would challenge the failed-support idea. The earlier buying area below is somewhere demand may return, so the target remains uncertain. Moving it farther away to display a larger ratio wouldn't remove that obstacle.
The source lesson, published October 16, uses constructed candles without a historical instrument or timeframe. It stops at the completed entry plan and shows no achieved target. It teaches how the evidence changes between the second high and the failed recovery; it supplies no measured win rate or tested edge. For the same distinction after a broader structural break, read bearish BOS and the retest.