Breakout vs Fakeout: The differences between Pros 🎯
In crypto, every time the price hits a key level, the crowd jumps in waiting for a “holy breakout.”
Professional traders do NOT. They stand outside, observing how the price BEHAVES at that level before making a move.
What does a real breakout look like?
• Volume increases significantly, clearly
• Candle closes firmly above resistance (or below support), not immediately reversing
• Demonstrates real buying/selling pressure, not just a price push for fun
• Usually, there will be a retest of the recently broken level, holding it → continuing trend
Fakeout – the classic trap of the market
• At first glance, it looks very “sweet”: price breaks the level, everyone thinks it’s a breakout
• Immediately after: turns back into the range, traders get trapped instantly
• Weak or distorted volume, long-wicked candles, showing rejection
• Cannot hold the recently broken level → reverses, turning the breakout into a FOMO trap
What differentiates a Pro from FOMO: Patience ⏳
Pros do not jump into the first leap.
They wait for 3 confirmations:
• Confirmation of structure
• Supporting volume
• Retest holding the recently broken level
Only then do they enter the trade, while most traders have burned out due to reacting too quickly, thinking too little.
In summary:
A real breakout rewards the patient. A fakeout punishes the hasty.
