✨The False Breakout is the trap that traders are exposed to.
🧭What is a False Breakout? It is a false breakout above resistance or below support followed by a quick return inside the zone.
The goal is often: to gather liquidity before the reversal.
💧 It usually happens above peaks and below exposed troughs.
📌 To avoid the false breakout
🔒 1. Wait for the close, do not rely on the momentary breakout.
Do not enter the trade just by touching the line.
A full close above resistance or below support is evidence of the true breakout.
It is best to rely on strong time frames (1H, 4H, daily).
🔍 The true breakout closes, while the false one leaves only a tail.
📉 2. Monitor trading volume
The true breakout comes with strong momentum and high volume.
The false breakout appears with weak volume followed by a quick reversal.
⚠️ Volume reveals the intentions of market makers.
🔁 3. Use retest
The price returns to test the area after the breakout.
If it respects it, it’s a safe entry.
If it slips inside immediately, it’s a false breakout.
🧷 The retest is the first safety filter.
🪤 4. Monitor exposed liquidity areas
Above peaks, below troughs, at accumulated stop-loss orders.
🩸 The false breakout is often a "liquidity trap" from which the reversal starts.
📡 5. Use higher time frames to confirm the trend
An upward trend breaking support is often a trap. A downward trend breaking resistance is often misleading.
📐 Confirmation tools
VWAP 📊
EMA 📉
Rejection candlesticks such as: Pin Bar 🔻
Engulfing 🔥
🛡️ These tools reveal the trap before falling into it.
