FALSE BREAKOUT: HOW TO IDENTIFY WHEN THE MARKET WANTS TO TAKE YOU OUT💵📊🔥
False breakouts are one of the most common traps in the market.
Many traders enter when the price breaks a level, but immediately after, the movement reverses and leaves them trapped.
1. What is a false breakout?
It occurs when the price breaks a support or resistance but does not continue in that direction.
The price quickly returns to the previous range and liquidates those who entered late.
2. Why do fakeouts occur?
• To trigger stop-losses placed in obvious areas
• To generate liquidity for large players
• To deceive retail traders who operate solely on breakouts
The market first cleans liquidity and then makes its real movement.
3. Signals to detect them in time
• Breakout without volume
• Very long wicks on higher timeframes
• Candle that breaks the level but closes within the range
• Weak structure before the breakout
4. How to avoid falling into the trap
• Do not trade on the first breakout
• Wait for a clear close outside the level
• Observe if there is a retest with real intention
• Combine areas with liquidity and structure
Conclusion:
False breakouts are not market mistakes; they are movements designed to take out those who trade without analysis.
If you learn to recognize them, you will avoid many unnecessary losses.
#fakeout #priceaction #TradingCriptomonedas
