#Write2Earn For clarification according to the followers' request, the difference between false and real breakouts

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Real breakout

$BTC $BNB $SOL and ❌ False breakout

In the analysis of Japanese candlesticks used in trading (stocks, currencies, cryptocurrencies…).

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1. ✅ Real breakout (on the left)

🔹 Indicates that the price has clearly broken through an important resistance level (the horizontal black line),

and continued to rise afterwards.

What you notice:

The large candle (green) clearly breaks the line.

The next candle is also green and closes above the line.

This indicates that the price has actually broken through and continues to rise.

🟢 Result: A good buying opportunity (entering a bullish position).

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2. ❌ False breakout (on the right)

🔹 Here, the price temporarily breaks the resistance, but quickly retraces and closes below the line.

What you notice:

The first candle breaks the line and rises.

The next candle is red (bearish) and closes below the line.

This means that the breakout was temporary, and the trend may reverse to a downward move.

🔴 Result: A trap for buyers, and it might be a selling opportunity (Short).

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📌 Important note:

These phenomena occur at support and resistance areas.

Always wait for confirmation of the breakout (at least two candles above the level).

The false breakout is one of the reasons for many losses for beginner traders.