Family Step by Step to Identify False Breakouts in Trading
1. 📊 Draw your key zones correctly
Support and resistance should be well defined.
Use zones (areas) and not exact lines.
Rely on higher time frames (4H, 1D) to validate them.
2. 🕒 Observe the market context
Is it in a clear trend or in a range?
False breakouts are common in sideways ranges.
Avoid trading breakouts during times of high uncertainty.
3. 💨 Analyze the volume
A real breakout is usually accompanied by a notable increase in volume.
If the price breaks but the volume is low or decreasing, it may be false.
4. 🕯️ Wait for the candle close
Do not trade the breakout before the candle closes (especially on H1, H4, or 1D).
Many times the price "breaks" only to return and close within the range.
5. 🔁 Confirm with pullback or retest
A genuine breakout often retests the broken zone.
If it breaks resistance, drops to test it as support, and bounces, it's a strong signal.
If it doesn't retest or does but doesn't hold, it may be false.
I hope this is helpful to you
Blessings and success
Thank you for following me 🫂
Give it a like
