My most recent trade involved spotting a false breakout. A coin was consolidating in a tight range, and then it suddenly spiked above resistance — but the breakout candle had a long wick and low volume. Instead of buying into it, I waited for confirmation. When the price dropped back into the range and failed to hold above the level, I entered short. This false breakout turned into a great opportunity. My stop was just above the fakeout wick, and the price dropped smoothly, hitting my targets. Recognizing false breakouts is a key part of trading. Many retail traders get caught in traps, but if you learn the signs — like weak volume and wick-heavy candles — you can trade against the crowd and win. Trust your observation and don’t get carried away by the excitement.
