You mark resistance.
Price breaks above it.
You buy immediately.
And then…
The market drops back below the level.
That’s called a FAKE BREAKOUT.
🧠 What Really Happened?
The market broke the level,
attracted breakout buyers,
then reversed.
Why?
Because many Stop Losses
are placed just above resistance
or below support.
Smart money uses that liquidity.
📊 Example with $BTC:
If $BTC breaks a strong resistance,
don’t enter instantly.
Wait for:
✔ Retest of the level
✔ Strong volume confirmation
✔ Clear candle close above resistance
Golden Beginner Rule:
Breakout is not confirmation.
Retest is confirmation.
Now tell me:
Do you enter immediately on breakout —
or do you wait for confirmation?
Not financial advice. Manage your risk.