False Breakout
Also called: False Break, Fake Breakout, Fakeout, Failed Breakout, Whipsaw Breakout, False Break Out.
How it is read
Traders commonly read a false breakout as a sign that the move past the level had no follow-through. They often put it down to thin participation, or to low volume on the break. Another reason given is a quick reversal once short-term orders were filled. A failed break above resistance that reverses lower is frequently described as a bull trap. A failed break below support that reverses higher is described as a bear trap. The reversal back into the range is the defining feature. The level that was breached is often watched again as a reference once price is back inside.
What it does not tell you
You can only confirm a false breakout in hindsight. What looks like a failed break in real time may resume in the original direction. What looks like a genuine break may still reverse later. It does not say how far any later move will travel. On its own it signals no direction. Volume, timeframe and the choice of level are subjective. Two observers may label the same candle differently. The pattern describes a price structure that already happened. It carries no information about future price.
Related concepts
Bull Trap / False Breakout: When a Resistance Break Fails
A bull trap is a false breakout: price pushes above resistance, fails to hold, and falls back into the range, trapping late buyers.
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