📘 Daily Trading Lesson – Episode 10
December 17, 2025 by #Hamayoon_1
💡 Fake Breakout – The Trap That Liquidates Traders
👉 I’m waiting for your likes and comments
One of the main reasons traders lose money is misunderstanding breakouts.
Not every breakout is real — many are fake breakouts.
🔹 What is a Fake Breakout?
When price breaks a support or resistance level but fails to hold above/below it and quickly returns back inside the range.
📌 The goal is liquidity and stop-loss hunting.
🧠 Why Fake Breakouts happen:
• Emotional entries
• Obvious stop-loss levels
• Low volume markets
• Smart money manipulation
🟢 Bullish Fake Breakout (Long Trap):
• Price moves above resistance
• Traders open longs
• Volume is weak
• No strong candle close
• Price quickly drops back below resistance
📌 Result: Long positions get liquidated
🔴 Bearish Fake Breakout (Short Trap):
• Price breaks below support
• Traders open shorts
• RSI gives no confirmation
• No strong candle close
• Price returns above support
📌 Result: Shorts get trapped
🔑 How to spot Fake Breakouts:
✔️ Wait for confirmation, not the first break
✔️ Check volume
✔️ Use RSI as a filter
✔️ Enter after pullback, not on the break
📊 RSI role in Fake Breakouts:
• Bullish breakout + weak RSI → Warning
• Bearish breakout + RSI divergence → Warning
📌 RSI is a filter, not an entry signal
🧾 Professional rule:
Breakout without confirmation = suspicious
Breakout without volume = dangerous
📌 Final reminder:
Before the real move, the market first removes impatient traders.
🔑 Patience + confirmation = professional trading
$H
