Corrections to Breakout Point The following scenario is typical...

Corrections to Breakout Point
The following scenario is typical when attempting to trade range breakouts: A trader is elated to see paper profits mount as price moves out of the range, and the trader is certain that it is a legitimate breakout. Price then retreats back to the entry price (just outside the range). Often, this price action results in the trader taking a very small profit or another small loss because he or she now feels that this is likely to be another false breakout. The price corrects, moving back to the range breakout point, and then takes off again in the breakout direction. The trader watches in frustration at having gotten out of the trade on the correction only to see that it was in fact a breakout.

According to Charles D. Kirkpatrick and Julie R. Dahlquist ("Technical Analysis: The Complete Resource for Financial Market Technicians," 2007), roughly half of breakouts that occur from trading ranges retrace back to the breakout point before continuing in the original breakout direction. Combine this with the high rate of false breakouts, and most novice traders lose money on the gyrations and end up missing the big move when it occurs.

Source: investorpedia