Trading Class

Markets › Aave › False breakout

Crypto · price-structure setup

False breakout on Aave

On Aave the false breakout showed up 25 times. The target came first 36% of the time, the stop 56%, and 8% went nowhere within 12 candles.

Counted on Aave (AAVE/USDT): daily candles from January 2021, 4-hour candles from January 2021 and hourly candles from January 2021.

By timeframe

TimeframeFoundTarget firstStop firstWent nowhere
4-hour633%67%0%
Hourly1937%53%11%

Aave against the rest

ChartsFoundTarget firstStop firstWent nowhere
Aave2536%56%8%
All Crypto charts52039%52%8%
Every market70339%53%8%

Year by year

YearFoundTarget firstStop first
2021367%33%
2022617%67%
2023450%50%
2024540%60%
2025333%67%
2026425%50%

The last 8 times

Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.

What the false breakout is

Price broke above resistance, then fell straight back below it. A trap.

Imagine a jack-in-the-box that pops up, then gets pushed right back inside. A false breakout is when price breaks above a ceiling, then soon falls back below it. The buyers who jumped in on the breakout are now stuck.

The full false breakout lesson, video and quiz ›

Other patterns on Aave

Inside bar · Stochastic bearish cross · Stochastic bullish cross · Spinning top · Volume profile bounce · Volume profile rejection · Doji · MACD bearish cross · MACD bullish cross · EMA 9/21 bearish cross · all of them

The false breakout elsewhere

Bitcoin · Chainlink · Uniswap · Polkadot · Cosmos · XRP · Dogecoin · TRON · Stellar

Questions

How often does the false breakout work on Aave?

In 25 cases on Aave, the target (1.5 × ATR) came before the stop (1 × ATR) 36% of the time and the stop came first 56%; 8% went nowhere within 12 candles.

What is the false breakout?

Price broke above resistance, then fell straight back below it. A trap.