Step by step
How to read it
- 1An obvious level. Buyers’ stops rest below it.
- 2Price pushes below and triggers those stops.
- 3The candle closes back above the level. The break failed.
- 4Sellers who chased the break are trapped; price moves away.
Watch out
Common mistake
Selling the first break of an obvious level before the candle has closed.
In one line
Definition
Price pushes beyond an obvious level, triggers the stops resting there, and closes back inside. The break failed — and the traders who chased it are trapped.
Check yourself
Check yourself
Price breaks below support, then the candle closes back above it. What is it?