What is false breakout?False Breakout
Price briefly moves past a key level, then quickly falls back into its old range.
Animation · false breakout
Learn “false breakout” in an animated lesson
- Forex: Pending Orders & RiskBuy Stop: Buying the Breakout
A buy order placed above the current price: it automatically buys when the price breaks out upward.
- Technical Analysis: Candles & ChartsVolume: The Force Behind Price
Price tells you what happened; volume tells you how many people took part.
- Volume & Volatility IndicatorsDonchian and Keltner Channels
One uses the highest high and lowest low, the other uses ATR: two channels, two kinds of breakout logic.
Related terms
See how “false breakout” works for yourself with an animation you can drag and play.
Go to “Buy Stop: Buying the Breakout”