How To Avoid False Breakouts

Here's a secret trick you can use in order to raise the probability of avoiding false breakouts!

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[Ermo]

Imagine talking about candles and not mentioning the duration....

[leeengler]

The bigger problem is resistance is a zone, not a price point..

[Cixshorts]

How do you confirm that breakout occurs?
1. Two Candles with their solid bodies (not wick) must close above the resistance and below the support line.
2. You need to wait until or unless price comes back to the resistance/support line he broke recently and retest it.
3. Due to high momentum, one big engulfing candle break that resistance or support zone swiftly also confirms the breakout.

If did not get any of these conditions happening around the resistance or support zone, do not enter into the trade if you are a breakout trader. Best advice for you.

[ShihabSayyed]

Nowadays Even after the candle is closed, the breakout turns out to be fake

[DT-yznr]

It is possible to close above and still go back down so be careful to draw your lines of saport and resistance properly

[mcprogenitormalayalam]

I recomment waiting for the next candle as well before take a trade make sure this also closes above or below the line

[thesnailshow]

Note the body closing above resistance or below support doesn't guarantee shite.

[Squid_Wrd]

The smartest way to win for beginners is to just trade along with the trend

[gorthichaitanyagorthichait]

Some times it's very tricky...first candle closes above the rest line and then the following candle will be big red candle where all the sl got hit.

[bets]

But look multiple timeframe is very confusing.... If 5min breakout 15 min candel is a rejection

[geonsorigin]

My signal to enter a short would be candle with body closing above the resistance. It works 80% of times.

[khafreahmose]

I like to wait for a pullback back towards the resistance line after price has broken it. After it holds, and a buy signal follows the pullback, it's money time!!!!

[blackbeatsentertainment]

I made this mistake a lot (thankfully I’m using a demo mode atm to practice and learn) and I lost profits repeatedly. Now I pay real close attention to wicks and I don’t put in more than just 1 bet at a time if I’m not truly sure. Either way I’ll wait and see a little while longer how everything is going to go if I’m making short timed bets. It’s been working pretty well so far.

[yam]

Also let the price test the previous resistance as support, if it holds take yourshot with appropriate RR. It doesn't work all the time, even if you are right there will be times when you lose.

[mike]

I find out that 2 different indicators had the line placed far from each other, one of them was correct

[VampirusX]

I love that ao many crucial facts like in this instance timeframes are not mentioned...
Here is, what I do as a breakout trader:
I enter with the THIRD candle (open) on the 3min or 3/4 of the 10min.

And don't forget to mark the prev with a channel from the body to the point of most wicks hitting to have a better reference to enter the trade (you could place a alert within the channel or or below for a early head-up).

[Mr.Anonymous-jupf]

What if it never retests? And continues? I always get FOMO cuz I don’t want the train to leave without me.

[Nichtsgehtlo]

In which time frame would you guys take the trade if the candle closes above the resistance

[riot_skullz-yt]

It’s recommended to wait to see if it goes down and bounces off the resistance line because that’ll mean that resistance line is now a support line and the price is far more likely to bounce back upwards and continue going upwards for profit

[deedevs]

It can trade and close above and still be grabbing liquidity lol