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False Breakout Trading Strategy

When was the last time you traded? Is the cashback forex mov rebateforexg in the direction you expected? When was the last time you had a breakout? I assume this is a common occurrence for you. You should know rebateforexfee rebateforexbroker ForexRapidRebate occur all the time in the market. Peoples herd mentality drives them to buy at highs Forex Rapid Rebate sell at lows based on price action. This sounds a bit harsh, but thats the nature of the market, most people lose money and skilled traders make money as the old saying goes, "Im a fish out of water. False breakouts False breakouts are just like market scams where the market reaches a level and then breaks that level, then rebounds, and doesnt stay above or below that level In other words, the market doesnt close at the level that has been verified but forms a false breakout after that These false breakouts leave great evidence of the direction of the markets next trend We need to take advantage of its strengths so that we dont fall victim to them Here is a false breakout of a key level:   false-break ofkeyresistancelevel: False breakout of key resistance level Essentially, a false breakout can be considered a reversal waiting for a price movement that clearly indicates that the market is moving to one side and closing out a herd mentality when the opposite direction is strongly reversed However, this is only an illusion and is the reason why many traders lose money due to feelings and emotions. This is the importance of maintaining principles in the area of false breakouts Types of False Breakouts 1. Classic Up and Down Traps at Key LevelsDown and Up Traps are usually 1-4 candlestick patterns that are false breakouts at key levelsThese false breakouts occur when the market is moving in the general direction and approaching key levelsMany traders will take a level as a breakout simply because the market is approaching strength Then they buy and sell at the breakout level, only to find out that it is a market upside and downside trap that forms after a move to a higher level, and those amateurs who observe a strong recent move cannot resist the temptation to enter the market above a key resistance level because they feel the market has breakout momentum. False breakouts of consolidation rhythms False breakouts of consolidation rhythms or false breakouts within the bound range are very common and can easily fall into the bound range of the breakout, only after seeing it reversing into the solid range The best way to see it is to wait for a close outside the bound range of the daily chart then You can then start watching for signals of price behavior in the direction of the breakout False-breakofconsolidation:False-breakout of consolidation rhythm3. Pregnancy line false-breakout Pregnancy line false-breakout pattern will help you understand market dynamicsIn essence, a pregnancy line false-breakout is a pattern of price behavior that requires a false-breakout of a pregnancy line patternSo, once you Once you encounter a pregnancy line, you should pay attention to the false breakout in the pregnancy line and the parent line The chart below shows two false breakouts, note that one has a pinbar pattern and the other does not, these are the two different forms of false breakouts Fakeysetup:False breakout patternFakeywithpinbarasfalse-break:False breakout with pinbar patternFalse-breakout Breakouts can cause changes in long-term trends We can use price behavior to analyze false breakouts and find them at key levels They often trigger a dramatic change in price direction, or even a change in trend at these key levels We need to be aware that candlestick chart tails that appear at key levels close at the most important level of the day, and if the market tails off outside the key levels, this Suggests a false breakoutPrice often wants to break through this level, but the daily closing price rejects this level showing a false breakoutThis will trigger a huge withdrawal or change in trendSo the focus should be on the daily closing priceThe chart below shows the false breakout of the daily chart of EURUSD, followed by the long-term downtrend FalsebreakofkeyresistanceFalse breakout of key resistance levels Downtrendresults downside results lessons learnedThe chart below shows a false breakout, the price broke out upward to reach a new high, followed by a sharp decline  SummaryIf we dont learn about false breakouts we will suffer losses in trading My advice to you is to put it all into practice and learn false breakouts and reverse trading strategies quickly so you will beat 95% of If you know about false breakouts you will still be profitable when retail traders make errors of judgment 

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