Glossary
What is False breakout
Price moved beyond a level but failed to hold and came back. For those who bought the breakout it is a stop; for the sweep model it is a reason to wait for an MSS.
How it works
BTC 15m: the Asian high pierced at 06:00 and a close back inside the range.
Example
The Asian high is 120 785. The 06:00 candle reached 120 821 but closed at 120 409 — below the level. Fifteen minutes later, a close below 120 210.
Common mistake
Calling every breakout that went against you false: it is false only after a close back inside.
Read next
Related terms
Frequently asked questions
- Where can I learn False breakout step by step?
- In the Trading OS Academy: “Sweep or breakout”.
- What is False breakout related to?
- Breakout; Sweep — liquidity grab; Close confirmation.
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