Breakout trading: how do you filter false breaks?

Breakouts promise the start of a move and deliver false breaks most of the time. The difference between profitable and unprofitable breakout trading is entirely in the filters: volume context, session, retests and how you treat the failed break.

Breakout trading: how do you filter false breaks? — support and resistance diagram
Price bouncing between support and resistance

What's your filter stack?

  • the conditions a level needs before you'll trade its break
  • how you handle the classic stop-hunt-and-reverse
  • whether you enter on the break or wait for the retest
Breakout trading: how do you filter false breaks? — trading sessions clock diagram
The four forex trading sessions across a 24-hour day

The support and resistance guide sets the foundation.

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