Trading Tips
Learn how to identify and avoid fake breakouts in crypto trading with these expert 2025 tips.
By Mukesh Prajapati
June 28, 2025
What Is a Fake Breakout?
Fake breakouts trap traders by moving past key levels briefly before reversing hard.
Real vs. Fake Breakouts
Compare real vs fake breakouts visually and spot patterns that help avoid losing trades.
Watch Volume – Low Volume
Weak volume during a breakout is a big red flag that the move might be a fakeout trap.
Wait for Retest
Always wait for a clean retest of the breakout level before entering the trade. Keep in mind before place a trade.
Timeframes to Confirm
Use higher timeframes to confirm breakout strength and avoid being trapped. Pro traders keep in mind.
Don’t Buy at Resistance
Entering at resistance without context leads to losses in fake breakout zones.
Use Alerts, Not Emotions
Set alerts, avoid emotional trades, and only enter confirmed breakout setups.
Combine Price Action + Indicators
Combine price action with indicators like RSI, MACD, and volume for better trades.
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