Glossary › false breakout

Trading glossary · structure

false breakout

When price pops out of a box but quickly falls back inside, fooling people who jumped in.

The fuller meaning

A break beyond support, resistance or a range edge that quickly reverses back inside. Traders who acted on the break are trapped, and their exits can push price hard the other way; warning signs include a wick-only break, weak volume and no follow-through.

false breakout, also called false break, fakeout.

Related words

above-average volume · bounce · break of structure · breakaway gap · breakdown · breakout · broken level · channel · choppy market · common gap