People always get carried away by false breakouts and loose their money. Here is an easy way to Identify weather breakout is genuine or price will reverse. It's simple Let's say in Bullish Trend
when price moving up shift your chart to 1Hr or 4Hr and look for previous High. Now If current candle breaks previous High then look at your Stochastic
Indicator If it's above 80 then breakout is false and 90% chances of price reversal.
1) In Bullish Trend
- Breaks Previous High
above 80 then breakout is false.
Same in Down trend when price cross previous low and Stochastic
is below 20 then breakout will be false and price reverse from that point.