#Day113 : How to Spot Fakeouts and Real Breakouts in Crypto
In crypto trading, not every breakout is the real deal. A real breakout occurs when price breaks a key support or resistance level with conviction—strong volume, momentum, and a solid close beyond that level. A fakeout, on the other hand, is a trap—price temporarily breaks out but quickly reverses, stopping out traders and causing losses.
🧠 How to spot the difference?
✔ Volume is key—real breakouts are supported by a noticeable volume spike.
✔ Look for candle confirmation—a full body close above resistance or below support.
✔ Be cautious of long wicks—they often signal rejection and a potential fakeout.
✔ Use indicators like RSI and MACD for confirmation.
✔ Wait for a retest of the breakout level—it often turns resistance into support.
🎯 Don’t chase breakouts blindly. Trade with a plan, set stop-losses, and use confirmation tools to avoid being caught in market traps.
#FakeoutVsBreakout #TechnicalAnalysis #LearningAndEarning #TradeWisely
