Lesson 11 of 25
Most short-timeframe breakouts fail
Breakout entries are the most crowded trade on the chart, so they are the easiest to trap.
What you see
- Break candle with a big wick and small body.
- No follow-through.
- Close back inside the range.
Why it happens
- The crowd enters on the break with stops right behind.
- That pile is the next target.
How to trade it
- Only take breaks with acceptance: body closes beyond and holds.
- A close back inside means it failed — reassess.
Journal it: Record whether you entered on the break or the retest.