📘 Daily Trading Lesson – Episode 10

December 17, 2025 by #Hamayoon_1

💡 Fake Breakout – The Trap That Liquidates Traders

👉 I’m waiting for your likes and comments

One of the main reasons traders lose money is misunderstanding breakouts.

Not every breakout is real — many are fake breakouts.

đŸ”č What is a Fake Breakout?

When price breaks a support or resistance level but fails to hold above/below it and quickly returns back inside the range.

📌 The goal is liquidity and stop-loss hunting.

🧠 Why Fake Breakouts happen:

‱ Emotional entries

‱ Obvious stop-loss levels

‱ Low volume markets

‱ Smart money manipulation

🟱 Bullish Fake Breakout (Long Trap):

‱ Price moves above resistance

‱ Traders open longs

‱ Volume is weak

‱ No strong candle close

‱ Price quickly drops back below resistance

📌 Result: Long positions get liquidated

🔮 Bearish Fake Breakout (Short Trap):

‱ Price breaks below support

‱ Traders open shorts

‱ RSI gives no confirmation

‱ No strong candle close

‱ Price returns above support

📌 Result: Shorts get trapped

🔑 How to spot Fake Breakouts:

✔ Wait for confirmation, not the first break

✔ Check volume

✔ Use RSI as a filter

✔ Enter after pullback, not on the break

📊 RSI role in Fake Breakouts:

‱ Bullish breakout + weak RSI → Warning

‱ Bearish breakout + RSI divergence → Warning

📌 RSI is a filter, not an entry signal

đŸ§Ÿ Professional rule:

Breakout without confirmation = suspicious

Breakout without volume = dangerous

📌 Final reminder:

Before the real move, the market first removes impatient traders.

🔑 Patience + confirmation = professional trading

$H

$ETHFI