#美联储联邦公开市场委员会决议 False Breakout: Why do you always get trapped in the so-called "strong breakout"?

False breakout is the most deadly harvesting tactic.

One action can eat up four waves: traders chasing the order, traders adding to their short positions, those cutting losses, and those reversing to short. Liquidity is drained one after another in this manner.

Why is it called a false breakout? Three signs can reveal the truth:

Huge trading volume that’s frightening, but the price remains completely still
→ The market maker is using your chasing orders to reverse positions.

Sudden clearing of clustered orders
→ The scripted manipulation to lure more buyers has finished, and the upward momentum disappears.

Price quickly drops back right after the breakout
→ The market maker is taking the chips from those chasing the long positions.

Retail traders see "breakout equals strength."

Professional traders see it differently:

Only when the chips change hands successfully after the breakout does the upward movement have sustainable momentum. If the change of hands fails? That’s a carefully designed trap.

Why do you always buy at false breakouts?

Because false breakouts look "most aggressive"—and retail traders love to chase the "most powerful" candle.

You see a temporary surge in volume,

I see:

Bottom momentum exhausted
Main players’ orders disappear
Bullish strength waning
Market liquidity drying up

The breakout itself is not a signal.

Whether the price can continue rising after the breakout—that’s the real signal.

What you chase is never the breakout itself, but the market maker’s lure candle— that "bait" that pulls you into the trade.

Look at the $BTC $ETH $PIPPIN trend; the same routine is replayed every day.