The concept of a false breakout is equally important for avoiding traps. A price push above resistance means nothing if the volume doesn’t follow through. Just like the Bitcoin move from March 3–23, the breakout looked promising at first, but the lack of real buying pressure made the reversal almost inevitable. I’ve learned to always check volume before trusting any breakout signal.
Overall, today’s lesson reinforces how crucial it is to combine price action + volume when judging trend strength. Whether it’s spotting a clean downtrend or identifying a fake breakout, understanding the market’s “participation” helps me avoid chasing the wrong moves and improves my confidence in reading charts.
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- Marialina·12-05 22:17TOPSpot on analysis! Volume confirmation separates real breakouts from traps [强]1Report