Broadly speaking, there are two main types of false breakout patterns that occur: A bull trap: when a market looks set to trend higher than it has before, by breaking out of its upper resistance level ...

What could bitcoin's "false breakout" pattern mean? Bitcoin recently attempted to break above a key trendline resistance and triangular pattern formation. However, it appears bitcoin has failed to ...

One particularly promising pattern is Pattern No. -8 ... This proves that this entry technique—based on false breakouts—performs well in today's markets, including those that have historically ...

As with any financial theory, there are risks. False breakouts are common in symmetrical triangle patterns. They occur when the price breaks out of the triangle but then quickly reverses in ...

Reduce false breakouts: If volume remains weak at the breakout, there’s a higher chance of a fake move back into the pattern. Measure the pattern’s height by finding the vertical distance ...

High volume confirms that the pattern is not a false breakout, thereby increasing the reliability of the trade signal. Another reason why volume matters is from the perspective of momentum.

False breakouts can occur in both directions ... you can enhance your ability to trade symmetrical triangles effectively. Symmetrical triangle patterns are a technical analysis tool used to predict ...