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2. Intermediate Strategies

False Breakout Trading Strategy

A false break occurs when price looks to breakout of a support or resistance level, but snaps back in the other direction, false breaking a large portion of the market out.  When prices begin to breakout higher a large portion of the market starts to look for the resistance to break and will enter long trades, often setting their stop loss on the other side of the resistance.

  • Can be traded on many time frames
  • Can be used in many markets and pairs
  • Can be traded with many triggers as the major entry
  • Often entering when the majority of the market has been stopped out entering in the wrong direction

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