True or fake breakout?

[sohelforex]

A trader always should give importance to fundamental analysis then technical because we don't know whether a breakout is true or false. Beginners should learn about the indicators well to be depended into it.
THanks.

[fxquest]

False break out is something that breaks the range to either side but for little time and then returns back into the range this results into losses for many trades as their stop loss triggered and some other enter into fresh trade considering it break out and so deceived.

[muhammadatif]

I cannot any suggestion about true of false brake in technical analysis because we don�t have any hard and fast rule or pre defined 100% accurate mathematical formula it is up to you according to your experience, trading and analysis skills.

[lax]

Traders consider technical indicators to trade and to figure out the market trend but at times these indicators do give false signals and lay a trap for the traders.So traders must trade cautiously based on both technical and fundamental analysis.

[aadrika]

Hi, One of the most critical issues in technical analysis is true and false break out-at least for me. I searched alot about this issue then I thout of starting this new thread. So please share your ideas about true and false break out and how to detect them. Thanks!

You should only worry about true or false breakout if you trade the trend breakout strategy. Also it depends on how you look at a breakout from support and resistance. Do you see support and resistance as fixed price points or do you see them as zones. If you see them as zones then interpreting a break will be much easier for you.

[niks]

I observed one common thing in most of the breakout .
The initial candlestick have very small tail .So you can earn nice profit for next candlestick, at-least 30+ pips instantly.

[hima]

I tried much times to adopt the others stratifies and analysis for my trades some it could be batter and some time its in lose position,
there for my opinion is to make analysis and that should be true in case that you analyze the Countries situations regarding the pairs then you are in Profit

[nirale]

Traders consider technical indicators to trade and to figure out the market trend but at times these indicators do give false signals and lay a trap for the traders.So traders must trade cautiously based on both technical and fundamental analysis.

[mayengbam]

whether a breakout is true or false, no one knows it with 100% accuracy. the market is dynamic we all knows it, it can even go against a news due to the sentiments of the trader sometimes. In such circumstances its really a tough call to identify whether the breakout is genuine or not, so the best option will be to wait for a few moment instead of rushing in to trade

[realfun07]

Traders consider technical indicators to trade and to figure out the market trend but at times these indicators do give false signals and lay a trap for the traders.So traders must trade cautiously based on both technical and fundamental analysis.