BANK NIFTY attempted to break above the VRZ High and briefly traded beyond the level, creating the impression of a bullish breakout.
However, buyers failed to sustain the move. The breakout quickly lost momentum, and price slipped back below the VRZ level, triggering a BOF short setup.
Once the failure was confirmed, sellers took complete control. The market declined sharply throughout the session, delivering an exceptional 1:9 Risk-Reward move.
The strongest BOF trades often occur when:
This BANK NIFTY setup demonstrates how a failed breakout can produce a move far larger than the breakout itself.
A trader risking 1 unit on this setup had the potential to earn 9 units, meaning a single trade could offset multiple small losses and still leave a substantial net gain.