Fake breakouts are the biggest reason traders lose money — the candle breaks the level, everyone jumps in, and the market reverses instantly. But here’s the truth: spotting a fake breakout takes only 5 seconds if you know what to look for. This is the simple trick I use every day.
The 5-Second Secret: Watch the Retest Candle Not the Break Candle
Most traders enter the moment price breaks support or resistance. That’s the trap. Smart money pushes price just beyond the level to grab liquidity, then pulls it back.
Here’s what I do instead:
1️⃣ Wait for the Break Candle to Close
Never trust a wick break. I only count it as a breakout when the candle closes beyond the level.
2️⃣ Look at the Very Next Candle (The Retest Candle)
This is the key.
If the next candle immediately comes back inside the zone, even slightly — that’s a fake breakout signal.
If it stays outside and shows strength, the breakout is real.
3️⃣ Volume Check (Optional but Powerful)
Real breakouts come with increasing volume. Low volume + breakout = trap.
Why this works: Fake breakouts are designed to take stops and trap impatient traders. By waiting just one candle, you filter out 70% of false moves.
Pro Tip:
On 1-min and 3-min charts, this trick works extremely well because fakeouts happen quickly.
Use this 5-second rule and watch your accuracy improve instantly. 🚀🔥