Breakout Trading Strategy: How to Distinguish Real Breakouts from Fake Breakouts
If you've done contract trading for a while, you've probably had this experience:
You've been watching a key level for a long time—the previous high, the upper edge of a range, or a trendline resistance. The market finally moves, and a large-volume bullish candle breaks through directly. Almost reflexively, you jump in, thinking 'This time must be real.'
But what happens?
As soon as you enter, the price stalls.
A few minutes later, it starts to fall.
Your stop-loss is hit.
You just exit, and suddenly the market rockets upward, soaring away.
At that moment, you won't doubt the market—you'll doubt life 😅
Later, you might come to a conclusion: