How to interpret breakouts with confidence, avoid the traps, and understand what really moves the price

1. What is a real breakout?

👉🏽 On the chart, it may just look like a candle breaking out, but behind it there is:

👉🏽 On the chart, it may just look like a candle breaking, but behind this there is:

  • Opening of new institutional positions

  • Stop orders of shorts being triggered

  • Crowd sentiment turning

1. What is a real breakup?

  • REAL BREAKOUT (with clear intention)

It's when the price not only breaks a level but also holds it, shows continuity, and has favorable context: trend, flow, and volume.

  • FALSE BREAKOUT (the classic trap)

It's the famous 'break and return'. It bursts through resistance, generates euphoria, triggers orders... and then gives it all back. This cleans the market of poorly positioned traders and hands the asset to those who know how to wait.

3. How to identify a breakout with a real chance of continuation

✓ Increasing volume at the moment of the breakout

✓ Candle closing outside the critical zone

Opening of new institutional positions

✓ Confirmation by pullback (testing the broken level is gold for the patient trader)

✓ Absence of exhaustion in indicators (e.g., RSI without divergence)

4. Traps to avoid that are costly:

⚠️ Breakout within long sideways movement = trap 90% of the time

⚠️ Trading before the candle closes = high risk of fakeout

⚠️ Breaking without volume = weak and unsustainable movement

⚠️ Entering without knowing where to exit = basic strategic error

REMINDER: 'Not every breakout pushes the price forward. But the true ones leave a trail, and those who know how to read, surf before the crowd.'

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