How to Spot Fake Breakouts Like a Pro 🚨📊🐍
⸻
1️⃣ What Is a Fake Breakout?
It’s when the price breaks a key level (support/resistance)…
…only to reverse HARD and trap traders. 😵
These are called bull traps or bear traps.
⸻
2️⃣ Why Do They Happen?
Because:
🔹 Big players want to trap retail traders
🔹 Stop losses get hunted above/below key levels
🔹 Volume is weak and momentum fades fast
Fake breakouts = liquidity grabs 💰
⸻
3️⃣ How to Avoid the Trap 👀
✅ Always check the volume – low volume = red flag
✅ Look for candle confirmations, not just the wick
✅ Use multiple timeframes to confirm
✅ Be patient — don’t jump on the first breakout candle
⸻
4️⃣ Wait for the Retest 🧠
The real breakout usually gives you a second chance:
🔁 Price breaks the level
🔁 Comes back to test it
🔁 THEN moves strongly in one direction
If there’s no clean retest, stay out. It’s likely a trap! 🪤
⸻
5️⃣ Pro Tip:
Always trade in the direction of the bigger trend 📈
Breakouts against the trend = higher fakeout risk 🚫
⸻
👉 Master this skill and you’ll save yourself a ton of losses and frustration.
Stay sharp. Wait for confirmation. Let the amateurs get trapped 😎
