What is an FBO ?

It’s a False ( Failed) Break Out.

Some call it a Bull trap when the supposed Break Out Up Fails

It doesn’t happen a lot…as most breakouts are Breakouts !

But when it happens it usually means a strong move in the opposite direction as all the Bulls that piled on get

scared and bail.

It’s Mr Market’s meanest trick.

Some people think almost every Break Out is an FBO…and these people usually have an agenda…and hold on waiting to be right….these people are not usually right and they lose money.

BUT FBOs can cut both ways.

Take the GDX:GLD Ratio as a case in point.

There was a well defined breakout of a beautiful H and S Bottom…The Bottomz Inn right ?