#CryptoCharts101

Breakouts Are Lies Until Proven True

Everyone talks about “breakouts.” Few talk about how to validate them.

Here’s the truth: most breakouts aren’t real. They’re traps. Engineered moves. Candle spam with volume cosmetics. If you want to enter smart, learn to filter them.

Let’s say price breaks resistance. Big green candle. Hype in the air.

Ask:

1. Was there buildup?

A valid breakout is usually preceded by compression, tight price range, volume decline, volatility drying up. No setup, no trade.

2. Is volume real?

Breakouts without clear volume expansion are often fake. Volume spike = commitment. Without it, you’re front-running bots.

3. How does it retest?

Real breakouts don’t mind coming back. If price flips the resistance into support on a low-volume retest and holds? That’s your shot.

4. Are indicators aligned?

Check RSI, MACD, OBV, they should confirm direction, not contradict it. Divergence during a breakout? Step aside, because divergence = danger.

5. What’s liquidity saying?

If the order book is thin beyond the breakout level, big players can reverse it fast. You want depth behind the breakout, not just a hollow spike.

TL;DR

A breakout is just a candle until price, volume, retest and structure validate it.

Don’t chase. Don’t guess.

Let the chart prove itself. Then enter (or don’t)