False breakout
Price briefly breaks a known level, traps breakout traders, then closes back inside the prior range.
Educational example of a false breakout. Real charts are messier — the shape is the idea, not a template.
What confirms it
Re-entry into the range plus follow-through away from the failed break.
Common trap
Reversing immediately on the first wick. Price must show that the level was genuinely rejected.
Read it in five checks
- 01Trend: Is the higher chart rising, falling or ranging?
- 02Location: Is the setup at real support, resistance or structure?
- 03Close: Did a full candle close beyond the trigger level?
- 04Invalidation: Where does the chart prove the idea wrong?
- 05Reward: Is there enough clear space before the next barrier?
A chart pattern describes price behaviour; it does not predict the next candle. Use it with a trend filter, a defined stop and a tested risk-reward rule. Educational examples only — not trading advice.
More breakout setups
Repeated highs meet rising lows. Buyers are becoming more aggressive beneath a fixed resistance level.
Full guide
Repeated lows meet falling highs. Sellers are pressing into a fixed support level.
Full guide
Lower highs and higher lows compress price. Energy is building, but the shape alone does not choose direction.
Full guide
Price leaves an area where buyers and sellers were balanced. The old boundary can become a new support or resistance level.
Full guide