A false breakout occurs when price briefly breaks a clear support or resistance level, triggers stops and breakout entries, but fails to hold beyond the level and quickly returns back into the range. This move represents a liquidity grab rather than a true directional move, often followed by short term a reversal in the opposite direction.
Trade closed: stop reached
-1R
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.