Voltas

Breakout Failure example attached.A breakout failure (also known as a false breakout or fakeout) happens when price moves outside a key level (support, resistance, or trendline) but fails to sustain and quickly reverses back inside the range or trendline. ❌ What is a Breakout Failure? It occurs when: Price breaks above resistance or below support Traders think it's a true breakout and enter positions But soon, the price reverses sharply, trapping those traders 🔁 Types of Breakout Failures: Resistance Breakout Failure (Bull Trap): Price breaks above resistance Fails to hold above it Falls back below resistance = False breakout Support Breakout Failure (Bear Trap): Price breaks below support Fails to hold below it Reverses and goes back up = False breakdown