#突破交易策略 false breakout identification and counter-trading strategy
False Break (假突破) is the main risk of breakout trading, and the identification methods include:
Close price confirmation: Only trade real body candlesticks that break through, ignoring the wicks.
Insufficient volume: The trading volume during the breakout is below the average level.
Quick return: The price quickly closes back inside the key level after breaking out. Counter-trading strategy: After confirming a false breakout, take a counter position. For example, if the price falsely breaks a resistance and then quickly falls back, you can short when it returns to the range, with a stop loss set above the false high. This strategy carries higher risk and requires strict stop losses.
False Break (假突破) is the main risk of breakout trading, and the identification methods include:
Close price confirmation: Only trade real body candlesticks that break through, ignoring the wicks.
Insufficient volume: The trading volume during the breakout is below the average level.
Quick return: The price quickly closes back inside the key level after breaking out. Counter-trading strategy: After confirming a false breakout, take a counter position. For example, if the price falsely breaks a resistance and then quickly falls back, you can short when it returns to the range, with a stop loss set above the false high. This strategy carries higher risk and requires strict stop losses.