A failed breakout occurs when the price moves

A failed breakout occurs when the price moves above an important resistance or consolidation zone, giving the initial appearance of a bullish breakout, but fails to sustain above the breakout level and subsequently falls back below it. This indicates that buyers were unable to maintain control and that the breakout may have been a false breakout. Ideally, after a genuine breakout, the price should sustain above resistance and often retest the breakout zone as support before continuing higher. In a failed breakout, the price instead returns below the breakout level, and if selling pressure increases, the former resistance can again act as a strong supply zone. A decisive move below the recent swing low after such failure can further confirm bearish momentum. Therefore, traders should watch for sustainability above the breakout level, retest behaviour, volume and subsequent candle structure before considering the breakout genuine. In simple terms: Breakout → failure to sustain → falls back below breakout level = Failed/False Breakout.