2. Wait for the price to close above/below the level.
3. Check the larger timeframe (like 15 minutes or daily) to ensure the movement continues.
4. Look for volume confirmation (an increase in trading supports the breakout).
5. Practical example:
- On the 1-minute timeframe:
- The price reaches $10 (resistance) and quickly rises to $10.1.
- A green candle with no wicks.
- On the 5-minute timeframe:
- The price returns to $9.8 with a large red candle.
- Conclusion: The breakout was false!
6. Golden tip:
Do not rely on a single timeframe! Always compare multiple timeframes (small + large) to confirm the validity of the breakout.
📊 Remember:
False breakouts are a common trap for beginners.