Do you ever wonder why a “breakout” feels like a promise and then disappears?
When price pierces resistance, I first check the volume spike. A genuine breakout on $BTC is usually accompanied by at least a 1.5‑times increase over the average 20‑bar volume. Then I wait for a clean retest of the broken level. If the retest holds on lower volume and the price bounces upward, the move has found support and the momentum often continues for another 2‑4 % swing.
Most traders jump in on the first candle, ignoring that the initial surge can be a “trap”—a false breakout that quickly reverses. They forget the retest is the real test; without it, the price often slides back into the previous range, swallowing the early gains.
If the volume stays flat and the retest fails, I step aside. The market is telling me the breakout was illusory.
What volume ratio would convince you that a breakout is worth chasing?
When price pierces resistance, I first check the volume spike. A genuine breakout on $BTC is usually accompanied by at least a 1.5‑times increase over the average 20‑bar volume. Then I wait for a clean retest of the broken level. If the retest holds on lower volume and the price bounces upward, the move has found support and the momentum often continues for another 2‑4 % swing.
Most traders jump in on the first candle, ignoring that the initial surge can be a “trap”—a false breakout that quickly reverses. They forget the retest is the real test; without it, the price often slides back into the previous range, swallowing the early gains.
If the volume stays flat and the retest fails, I step aside. The market is telling me the breakout was illusory.
What volume ratio would convince you that a breakout is worth chasing?
