How to Spot a False Breakout Before You Commit
A break beyond a prior high or low is not automatically a trade. In training we ask traders to wait for evidence that price is accepted outside the range rather than briefly printing beyond it.
Start with context. Was the range well defined for several sessions, or was it a thin one-day pause? Thin pauses produce more noise. Next, watch how volume behaves on the break candle relative to the prior bars inside the range.
If price re-enters the range within a short window and stalls, treat that as a warning. Many false breaks reverse into the opposite direction and punish early entries placed right at the edge.
Practise this on historical charts before applying it live. Mark ten break attempts, note which ones held, and write one sentence on what confirmation you would have required.