False breakouts
Trend & Structure
The trap
Price breaks a level, sucks in breakout traders, then snaps back, trapping everyone. Wait for a close beyond the level or a successful retest before trusting any break.
Check yourself
Best protection against false breakouts?
- Buy every break instantly
- Demand a close beyond the level or a retest that holds correct
- Never trade breakouts
Wicks lie, closes tell the truth. Retests separate real breaks from stop-hunts.
Learn this properly
This term has a full interactive lesson in Wick — the chart, the pattern to tap, and a live practice terminal to try it on. Free to start.
Open the lesson