IJR fell by more than 1% as high-beta stocks led the sell off. On the price chart, IJR failed to hold its flag breakout as it moved back below the breakout zone. This is the challenge with playing breakouts. Compared to a mean-reversion strategy, risk is almost always higher when playing a breakout strategy because the entry price is invariably higher. As far as a mean-reversion strategy is concerned, the next setup will trigger when RSI(5) moves below 30.
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