False Breaks produce fast moves

A false breakout occurs when price moves up past a previous pivot high and suddenly reverses for a fast move in the oppostte direction. A false break can also appear when the market breaks out of the top or bottom of a triangle or other common pattern and reverse through the bottom or top of the pattern unexpectedly.

A false breakdown occurs when price moves down past a previous pivot low and suddenly reverses up for a fast move.

False breaks occur when the market breaches a chart pattern then suddenly reverses for the man move. Sometimes this is done by traders "setting up" the market, and typically the false break sops and turns on a Fibonacci point or on a Support or Ressstance Line

This occurs reasonable often and can also be the setup for the maaor move. Sometimes this a test of a previous point of sgnificance like a trendline, low or high or fibonacci line etc.

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Bull Trap / false breach

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