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Falsebreak

BTCUSDT - bull trapYesterday there was a false breakout! super beautiful example! I will tell you below what a false breakout is! False Breakout Patterns False-breakouts are exactly what they sound like: a breakout that failed to continue beyond a level, resulting in a ‘false’ breakout of that level. False breakout patterns are one of the most important price action trading patterns to learn, because a false-break is often a very strong clue that price might be changing direction or that a trend might be resuming soon. A false-break of a level can be thought of as a ‘deception’ by the market, because it looks like price will breakout but then it quickly reverses, deceiving all those who took the ‘bait’ of the breakout. It’s often the case that amateurs will enter what looks like an ‘obvious’ breakout and then the professional’s will push the market back the other way As a price action trader, you want to learn how to use false breakouts to your advantage, rather than falling victim to them. Here are two clear examples of false breakouts above and below key levels. Note that false breakouts can take different forms. Sometimes a false break will occur with a pin bar pattern or a fakey pattern as the false break, and sometime not A false breakout is essentially a ‘contrarian’ move in the market that ‘flushes’ out those traders who may have entered on emotion, rather than logic and forward thinking. Generally speaking, a false-break is happens because amateur traders or those with ‘weak hands’ in the market will tend to enter the market only when it ‘feels safe’ to do so. This means, they tend to enter when a market is already quite extended in one direction (and it’s about ready to retrace) or they try to ‘predict’ a breakout from a key support or resistance level too early. Professional traders watch for these missteps by the amateurs, and the end result is a very good entry for them with a tight stop loss and huge risk reward potential. It takes discipline and a bit of ‘gut feel’ to know when a false-break is likely to occur, and you can never really know ‘for sure’ until after one has formed. The important thing, is to know what they look like and how to trade them, which we will discuss next…
by Yuriy_Bishko
30
DAX 30Short Term Trend: Bullish. Price Action Signals: Price sold off after a false break out above the 14135 resistance level last week. Price moved down from a Bearish Pin Bar that formed just under the 14135 major resistance level, 2 weeks ago (counter trend). You will note last week we said ‘We are not looking to trade the break out above the 14140 level as this type of trade has proven risky in this market recently, with several false breaks eventuating’ Potential Trade Idea: We are considering trading longs only after a substantial retracement in prices AND after a price Action Buy signal forms on the 4 hour or daily chart at either the 13460 or 13248 support levels.
GLong
by mr.rayparis
$EURUSD - NO FLASEBREAK SIGNAL BUT CLASSIC CONSOLIDATIONEURUSD didn't make a daily close below the trendline to produce a false break signal, and ojectively it has in fact signals some more. Looking at the head and shoulder topping structure while assuming the September top is in, this is a classic consolidation pattern of tight trading ranges forming a harmonious ABC move, so and I'd expect a solid turn at next key levels. 1.1880 is a closed eyes sell imo with room to average up above. In small already but may shed some tomorrow and sell better levels. Fundamentally, latest PMI's showing improvement in the manufacturing but services rebound has been very slow. Covid is ravaging through Europe, UK and USA and others at staggering rates of daily new cases and there will be another demand shock to global markets at the rate this is going. Governments will have no choice but to impose stricter measures on social distancing, mask wearing etc and this will have a lasting effect on the services sectors, which for many economies is by far the largest contributor to a countries GDP. The ripple out effects can be far-reaching and and governments and ECB will have to provide more economic relief and stimlus. Whilst the Federal Reserve is likely to sit on their hands and hoping inflation would just run hot from here, the ECB is already faced with low inflation pressures and the sudden EUR strength will not help them be any closer to creating some moderate inflation. I think this gives them room to take actions that will slightly weaken the EUR whilst providing more monetary support to fiscal measures.
Short
by doejistar
S&P 500 Just Held a Potentially Key LevelThe S&P 500 is down again this week, but it’s trying to stabilize. Looking back to the left of the chart, a potentially important level could be in play. 3214.68 was the low on January 31. It was the last meaningful support level before the coronavirus panic swept the market in late February. Scrolling back to an intraday chart from that fateful time of February 24-27 highlights the importance of the 3214.68 level. The S&P 500 held it almost exactly on the Monday (24th). Then on the Tuesday (25th), it knifed through it and didn’t look back. Yesterday morning, the S&P 500 probed under that same level but quickly rebounded. That could be a false breakdown, leading to a potential reversal higher. The 3214.68 level from late January has mattered at other times since the crash. It was near the high in early June. It was resistance July 13-17 and then support July 24-30. TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Editors' picks
SP:SPX
by TradeStation
30
Tesla False Break Out | Prijs Weer BullishIn de post van gisteren zei ik dat het waarschijnlijk is dat Tesla naar de support van 900 usd zou gaan om twee redenen. 1: Tesla brak bearish uit de descending triangle. 2: De prijs zat onder de 21 ema. Wat nu echter is gebleken, is dat Tesla vandaag hoger opende dan de close van gisteren. Vervolgens zit de prijs boven de resistance van de 21 ema en de triangle. Dit zorgt er dus voor dat we onze mening moeten veranderen van bearish naar bullish. De data verteld ons namelijk dat de analyse van gisteren niet juist was. Wat je wilt voorkomen is dat je als trader je koppig gaat houden aan je eigen analyse. Wat je wilt of wat je denkt wat gaat gebeuren, is soms anders dan de realiteit. Accepteer die realiteit en zorg ervoor dat je direct klaar staat om een goede trade te maken, ondanks dat je analyse onjuist is verklaard door de data.
NASDAQ:TSLALong
by VinanceYT
AUDCAD Short Term ForecastD1 - Bullish trend pattern. The price has reached a key resistance zone formed by the 161.8% (0.96314) fibonacci expansion level of the first wave and the 61.8% (0.98591) fibonacci expansion level of the second wave. Shooting star candle pattern, potential bearish divergence. Expecting corrections to happen now. H4 - Engulfing candle pattern. The price has created a false break of the wedge pattern. Expecting the price to continue lower further in the short term.
Short
by VladimirRibakov
4
False break for the EuroAre we looking at a false break on the Euro USD according to the Indicator we are trading along the top 1% of price movement at the 3 standard deviation meaning we could be looking at a quarter high with that we are also above 1.100 which was a key level to start looking for move in price action we may see parity which would have this pair fall to 1.00 before the market makes its decision on its next move. But we face a high probability that the down ward pressure in this pair is here to stay Targets: Short at 1.100 Exit at 1.00
Short
by RobinhoodFX
1
USDJPY ForecastH4 - Price respected the key support zone formed by the 106 psychological zone, alternative trend line, and the 61.8% (106.371) fibonacci expansion level of the first wave we have. We also had a false break of the alternative trend line and the last low, bullish divergence. The price has also broken above the downtrend line and has created higher highs. H1 - Bullish trend pattern, currently it looks like a pullback is happening. Bullish hidden divergence. Expecting further continuation higher after pullbacks.
Long
by VladimirRibakov