Why do you always buy at the breakout and get trapped at the top of the mountain?
Because many people can’t even tell what a real breakout is versus a fake one.
The most classic scene is: A single big bullish candle suddenly shoots up.
In the group someone just shouted “To the moon!” You’re afraid you’ll miss the opportunity, so you rush in and buy—only to start falling right after.
Then when the real breakout comes next time, you suddenly don’t dare to buy.
I’ve suffered losses like that before, too.
Later I realized that most fake breakouts share certain common traits.
First, look at volume.
For a real breakout, money will definitely follow.
When the price rises and the trading volume also clearly expands—this is what shows that real cash is being pushed in.
If the price goes up but the volume doesn’t show up, you should be wary.
Remember this line: Breakouts without volume confirmation are discounted in credibility.
Second, look at the closing position.
A breakout during intraday trading doesn’t count as a real breakout.
Many operators like to pump it up during the session to create excitement; once retail traders chase in, the price closes back down.
That’s why I prefer to look at the closing price. Only when it can hold above the resistance level does it have real reference value.
Third, look for a pullback and confirmation.
Many genuine big moves don’t go straight up in one line.
After the breakout, if it pulls back to confirm and then continues higher, it’s actually healthier.
If the pullback doesn’t break the key level, that means the breakout is valid.
So when I see a breakout now, I won’t rush in immediately.
First, check the volume;
then, check the close;
and finally, wait for the pullback.
I’d rather make a little less than buy into a fake breakout.
After years of trading, I’ve become more and more convinced of one saying: Slower is fine. The market isn’t short of opportunities. What usually makes people lose money is being afraid to miss out.
Follow Brother Ming—no boasting, no empty promises. I’ll only share real trading experience you can use to survive in this circle. If you’re still losing again and again and restarting over and over, come talk to me—I’ll teach you how to make trading simple@铭哥讲ETH
Because many people can’t even tell what a real breakout is versus a fake one.
The most classic scene is: A single big bullish candle suddenly shoots up.
In the group someone just shouted “To the moon!” You’re afraid you’ll miss the opportunity, so you rush in and buy—only to start falling right after.
Then when the real breakout comes next time, you suddenly don’t dare to buy.
I’ve suffered losses like that before, too.
Later I realized that most fake breakouts share certain common traits.
First, look at volume.
For a real breakout, money will definitely follow.
When the price rises and the trading volume also clearly expands—this is what shows that real cash is being pushed in.
If the price goes up but the volume doesn’t show up, you should be wary.
Remember this line: Breakouts without volume confirmation are discounted in credibility.
Second, look at the closing position.
A breakout during intraday trading doesn’t count as a real breakout.
Many operators like to pump it up during the session to create excitement; once retail traders chase in, the price closes back down.
That’s why I prefer to look at the closing price. Only when it can hold above the resistance level does it have real reference value.
Third, look for a pullback and confirmation.
Many genuine big moves don’t go straight up in one line.
After the breakout, if it pulls back to confirm and then continues higher, it’s actually healthier.
If the pullback doesn’t break the key level, that means the breakout is valid.
So when I see a breakout now, I won’t rush in immediately.
First, check the volume;
then, check the close;
and finally, wait for the pullback.
I’d rather make a little less than buy into a fake breakout.
After years of trading, I’ve become more and more convinced of one saying: Slower is fine. The market isn’t short of opportunities. What usually makes people lose money is being afraid to miss out.
Follow Brother Ming—no boasting, no empty promises. I’ll only share real trading experience you can use to survive in this circle. If you’re still losing again and again and restarting over and over, come talk to me—I’ll teach you how to make trading simple@铭哥讲ETH