Ra321Jun 28, 2022
False break
Price breaks support or resistance and closes back in range
- Look for strong bullish momentum into resistance
- Let price take out extreme highs of resistance
- Wait for a false break pattern
- Go short on the next candle’s open
Vice versa for long
Here's an example...
There are hundreds of price patterns out there.
But not all are important because they could be too complicated, subjective, or simply don’t work.
So here are 5 useful price patterns that are easy to understand and can help you better time your entries
False breakBreak of structure
A reversal pattern that allows you to enter a start of a new trend
- Look for an uptrend approaching resistance on a higher timeframe
- If the price fails to make a higher high (i.e. made a lower high) go short on a break of swing low or support
Here's an example...
3