#Educational Post đšâđ»
đšHow to avoid false breakouts like a pro?đA false breakdown is a situation when the price violates an obvious level, but then suddenly changes direction.đWhen the initial breakout of the level occurs, many traders open a trade in the direction of the breakdown.đOne of the ways to detect false breakouts is to monitor the volume, Real breakouts are usually accompanied by strong indications of trading volume at the time of the breakout.đIt is also useful to monitor not only the trading volume but also the price movement on the lower timeframe. In many cases, you will see that the price makes a very sharp pullback on the lower timeframe, which is not visible on the higher timeframe.đThe false breakout trap includes several candlesticks , usually 1-4, that go beyond the key support or resistance level . Such breakouts occur after a strong movement, as the market has reached an important level, but the price momentum still retains its strength.