Don’t Fall for the Trap: How to Spot Fake Breakouts Using Volume
Most traders get trapped by breakout candles. Price jumps, you FOMO in, and boom – it reverses.
Here’s how to avoid those fake breakouts and enter only when it’s REAL.
Strategy: Volume Confirms the Breakout
Step-by-step:
Wait for the candle to close above resistance
Check if volume is higher than the 20-day average
Don’t enter immediately – wait for a retest
Enter with a tight SL just below the breakout zone
Target the next swing high or Fibonacci extension
Visual Example:
Red line = Resistance
First breakout = Low volume = Fake
Second breakout = High volume + retest = Real move
Pro Tip:
If volume doesn’t spike, it’s likely a trap.
Master this setup and your win rate will skyrocket.
