🥷🏼Ever entered a breakout trade, only to watch price slam back in your face?
That wasn’t bad luck — it was a liquidity trap.
Let’s break it down so you never get faked again.
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What is a Fake Breakout?
It’s when price pushes above resistance or below support, triggering entries…
Then immediately reverses, stopping you out.
Why does this happen?
Because smart money needs YOUR liquidity to enter big trades. 💰
They let retail traders (like most) jump in — and then eat their stops.
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3 Steps to Detect Fake Breakouts Before They Happen:
1️⃣ Volume Check
Real breakouts = strong volume.
Low volume = high chance of trap. 📉
2️⃣ Wait for Candle Close
Never enter mid-breakout.
Always wait for the candle to close above/below the level — with confirmation. 🕯️
3️⃣ Retest is King
The best breakouts retest the broken level.
If it holds → entry.
If it fails → trap avoided. 🎯
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Bonus Tip: Use Liquidity Zones
Mark out recent highs/lows.
That’s where stop-losses sit — and where fakeouts happen most.
If price breaks the level but leaves a wick and reverses fast — that’s your sign. 🚨
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Want to Master the Art of Avoiding Traps?
Comment “NO MORE TRAPS” and follow for an upcoming post with real chart examples of fakeouts, plus how to reverse trade them like a pro.
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