[ninZa.co] How to spot a fake breakout?

[ninZa.co]

Have you ever lost your hard-earned money over a fake breakout?

Yep, we know it's frustrating.

Which is why we're here to share & discuss a tip to help traders avoid fake breakouts and, more importantly, seize the high rewards of dependable breakouts.

So, we've discovered that volume clusters could hold the key to identifying genuine breakouts.



In a downtrend, when the price interrupts the above trendline. But if there's no spike buy volume cluster (a volume cluster suddenly higher than others nearby) during this period, it's likely a fake breakout.

We can confirm this fake breakout by observing the subsequent sell volume cluster if it exceeds the mentioned buy volume cluster. In such cases, the market will continue in a downtrend.

The similar applies to an Uptrend.

And, for a highly-reliable breakout, watch for the price interrupting the above or below trendline with a spike in the buy or sell volume cluster in the same range.

That's our simple tip.

Now the question comes to you:

How do you normally spot a fake breakout?

 

[MrMuppet]

when your stop gets hit it was a fake breakout

 

[Nobert]

How does one choses Z as their logo, during these events.

 

[Collagen]

Maybe he is Russian or just a Russian fan.

 

[deaddog]

And, for a highly-reliable breakout, watch for the price interrupting the above or below trendline with a spike in the buy or sell volume cluster in the same range.

That's our simple tip.

Could you show us one in real time?

 

[traider]

When you hit take profit it wasn't a fake breakout

 

[David's faith]

Breakouts are fakeouts until S/R is either tested again and left with a HH/LL or the move is so monstrous it hits the next S/R without ever looking back. In that case you missed the trade if you waited for a test. The difficulty is not differenciating fakeout and breakout but catching the entire monstrous move if a breakout is real and powerful

 

[murray t turtle]

Breakouts are fakeouts until S/R is either tested again and left with a HH/LL or the move is so monstrous it hits the next S/R without ever looking back. In that case you missed the trade if you waited for a test. The difficulty is not differenciating fakeout and breakout but catching the entire monstrous move if a breakout is real and powerful

%%
LOL= that'$ one way to tell if you missed the move / one missed the whole trade.
Fake brakeout, is the question?? Dont put on the brakes so fast; assume one does lot of trend study, all the data.
Mainly study the main trend mainly, occasional counter\trend ;
realtime SPY...................... SPY 200dma trends/main trends much better than[ SPXU, spx]
Its like S Twain Love song/
sign/
its the same old line/
every time. Same old line/almost every time= 200dma
So few catch the entire move, unless investing some;
wisely get 80% or 88% or58% or 77% +/or some good candlechart profit

 

[TheDawn]

This is why you set up a stop-loss. Stop-loss is exactly designed to mitigate your losses when there is a fake breakout in both directions of the trend.

 

[murray t turtle]

Could you show us one in real time?

%%
I did+ still is.
SPY only sold off only a bit last hour -2-3 CST.
200dma still up, 2023 YTD still up/JUL still up/ weekly still up\daily still up .
SH \ same except inverse\so all those are down for that.
WILL SPY= WED be up@ close ??
I have NO idea; it'$ a bull market you know. Most likely you know that??