A breakout that failed to proceed past a level, leading to a "false" breakout of that level, is referred to as a "false breakout."
One of the most essential price action trading patterns to learn is the false double bottom and double top patterns,
as a false-break is frequently a very strong indicator that price may be changing direction or that a trend may soon...
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make your analysis before a trade
Here is an example of a profitable trade that closed out today for a 2R gain.
I currently have an open order on the USDCHF with a simular setup. See linked idea.
The setup consists of the following elements:
strong / clear preceding trend
consolidation in the form of one or more inside bars
a false break out of the consolidation, thus rejecting the counter...
