Scat, I appreciate your attempt to show your KISS method, but I'm with
@Laissez Faire on his points. There is nothing simple about this once you need to actually come up with a trading plan which includes where to enter, where you stop out, and where to take profit. His point about chasing breakouts being in direct conflict with the idea of selling resistance is spot on.
I took the liberty of going over the chart you post and I want to discuss some areas using your ideas. At B we have a double bottom, but it doesn't bounce far, and breaks through the second time. You drew this line on your chart to I think highlight the support turned to resistance at A, which does work for a reversal trade, but if we used the lower swing low, which is where line C is, then this area doesn't work so well since it goes above the level at C to get to A. And we can even argue that the lower line is a better line since it is a more prominent swing low.
If we look at C, we certainly don't have a double bottom as it breaks through. But we also can't really chase the breakout, or breakdown in this case, as it comes back above on its way to A.
At D, we have another case of a failed double bottom, and if we tried to short this, well, its barely good for 5 points. If you need to see how price develops at a key point, you're now going to be shorting much lower than where it broke, or buying much higher from where the breakout happened. And this will usually be entering at the worst possible time.
Moving to E, we have a failed double top, but maybe you don't like that swing high as its recent. At F, the double top works well, but as stated above, if we are shorting double tops, how on earth can we chase breakouts?
G is a perfect example of this. Here the breakout trade seems to work as it shoots up to H, but then comes right back down to almost this same level again. The point at H does provide the double top, but how on earth do we know to take a short at H and a long at G for the breakout? Of course by the time we get to G, we can see the series of higher lows, so perhaps we want to take the breakout at G, but this is also getting into a long trade very, very late.
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Its clear that when doing this in real time, its practically a coin toss if you should be taking a reversal trade or a breakout trade. Furthermore, if you want to use anything bigger than a 5 point stop, you will now need at least a 10 point target since your win rate will I doubt be better than 50%, and many of these trades don't offer even 10 points profit before price comes right back down to your entry.
Don't get me wrong, I love the KISS approach and see many of these setups, but when it comes to actually trading it vs. marking up a chart after the fact, its a whole different game.
) - his sons AFAIK just trade.