#BreakoutTradingStrategy
Breakout Trading vs Fakeouts: How to Avoid the Trap đđâ
Letâs be honest: breakout trading is exciting, but it can also be a trap â especially when fakeouts strike. đš You see a breakout, enter fast, and boom⊠price reverses hard. Sound familiar?
Hereâs how Breakout Trading stacks up against the reality of Fakeouts:
â Real Breakouts
Breaks key levels with volume confirmation đ
Price often retests the breakout point before continuing
Best when aligned with market structure + trend direction
Rewarding with strong risk/reward setups đŻ
â Fakeouts
Sudden spike above/below key levels, then sharp reversal
Low volume, often during low-liquidity sessions
Traps emotional traders and stops them out
Common during news events or just before big moves đłïž
đ My tips to avoid fakeouts:
Wait for a retest before entering
Watch volume and candlestick confirmation
Donât chase â plan your entry with logic, not FOMO đ§ââïž
Breakouts can be powerful, but only when confirmed.
Do YOU wait for the retest or enter immediately?
