Why it breaks and comes straight back

Price pokes through a level, everyone reacts, and it snaps back inside. That is a false breakout, and it is common enough that it deserves its own habit.

Why it happens

Orders sit just beyond obvious levels — stops from people already positioned, entries from people waiting for a break. Reaching them takes very little size, and once they are filled there is nothing left to push it further.

How to tell, in practice

• Only the wick went through, the close did not — most likely false
• No volume on the break — most likely false
• It closes outside and the next candles hold there — most likely real

The habit that fixes it

Wait for the candle to close. You will enter a bit worse on the real breaks and skip most of the fake ones. That trade is worth making.

The usual mistake

Entering the instant the line is touched. The line is not the event. What price does after touching it is the event.

This is for learning and is not investment advice.