Variants and Entry Archetypes
This section describes how Breakout & Impulse Continuation most commonly appears in live markets. These are not separate strategies. They are recurring expressions of the same intent. Each archetype answers one question only:
Is expansion being accepted, or is the market still negotiating?
1. Compression Break
Price compresses tightly within a defined range or structure. Volatility contracts. Participation thins. When expansion occurs, it does so with speed and follow-through. Look for:
- Tight overlap and reduced range
- Sudden increase in participation
- Immediate separation from prior structure
Continuation depends on acceptance outside the compressed area. Hesitation signals failure.
2. Breakout and Hold
Price exits balance and pauses just outside the prior range. The pause holds. Counter-pressure fails. Acceptance forms above or below the boundary. Look for:
- Clear range or balance boundary
- Expansion followed by shallow pause
- Defense of the breakout area
This is continuation through confirmation, not impulse alone.
3. Impulse After Failed Auction
Price attempts to explore beyond a level, fails to gain acceptance, then reverses and expands forcefully in the opposite direction. The failure becomes fuel. Look for:
- Rejection at one side of balance
- Rapid shift in participation
- Expansion away from the failed attempt
Continuation is driven by trapped inventory resolving.
4. Range Expansion from Balance
Price trades within balance for an extended period. Expansion emerges with commitment and space to move before opposing structure is encountered. Look for:
- Well-defined balance area
- Expansion with participation and follow-through
- Clear relocation away from value
This expression often produces clean continuation before the next auction forms.
How to Use These Archetypes
These archetypes exist to support recognition, not decision-making. The strategy remains the same across all expressions.
If expansion is accepted, continuation is favored.
If acceptance fails, the strategy disengages.
Execution rules live in the next section.
Summary
Breakout & Impulse Continuation expresses itself through expansion that holds. Whether that expansion emerges from compression, balance, or failure, the defining feature remains acceptance.
When expansion is defended, continuation is active.
When acceptance fails, the trade disappears.
Execution Rules are described in Stop 5.7