loading...
Understanding breakout trading and how to identify valid breakouts from false moves.
A breakout occurs when price moves decisively beyond a defined level of support, resistance, or a chart pattern boundary. Breakouts represent a shift in the supply/demand balance — the level that previously contained price has been overwhelmed.
Key insight: Not all breakouts are created equal. The best breakouts have three elements: a clear level, above-average volume on the break, and a retest of the broken level that holds. Without these, you're likely watching a fakeout.
Failed breakouts (fakeouts) are actually more common than successful ones in crypto. This is why confirmation matters — waiting for a candle close beyond the level and volume confirmation filters out the majority of false signals.
The retest is your friend. Most failed breakouts fail because traders chase the initial move. Wait for price to break, pull back to the level, and bounce with volume. That's the real entry.
The Academy teaches this concept through structured lessons with real chart examples.
Join Academy →