Patterns › False breakout
Market structure
False breakout
Price broke above resistance, then fell straight back below it. A trap.
How often it worked
| Market | Times found | Target first | Stop first | Went nowhere |
|---|---|---|---|---|
| India (NSE) | 12 | 33% | 67% | 0% |
| United States | 12 | 33% | 67% | 0% |
| Japan | 4 | 100% | 0% | 0% |
| Crypto | 118 | 39% | 50% | 11% |
| Forex | 10 | 30% | 50% | 20% |
| Commodities | 3 | 0% | 100% | 0% |
Counted on real past charts by the Trading Class research engine, 159 cases in all. Past odds, not a forecast.
How to practise it
Is this breakout real? Then decide: buy, sell, or wait? In the app, 36 real examples of the false breakout wait for you across 6 markets, and you say what happened next before the chart shows you.
Lesson: Volume: how many joined the fight.
Related
Support bounce · Resistance rejection · Breakout · Gap up · Gap down