Important Post: If you understand it, you have surpassed 30% of trading errors


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Most losses and comments occur during breakouts and false breakouts in ( manipulation ) zones.
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Explanation and clarification of the behavioral difference between (Retest) and (Fakeout) after a breakout candle of a resistance area. The idea is that the first candle in both cases is identical (Breakout Candle), but what happens afterward determines the scenario.
🔹 First: The Retest Scenario (Successful Retest)
Means the price broke the resistance then returned to test it as support and continued upward.
What do we notice?
1. A small red candle / Doji appeared above the resistance
→ Indicates sellers tried to pressure but without breaking the area.
2. The next candle closed bullish
→ Indicates buyers are still in control.
3. The low of the previous candle was not broken
→ Means the decline was just a test, not a failure of the breakout.
Result
The area turned from resistance to support → The bullish trend continues.

🔹 Second: The Fakeout Scenario (False Breakout)
Means the breakout was temporary, then the price returned below the resistance and continued downward.
What do we notice?
1. The first candle after the breakout closed below the area
→ Unstable breakout.
2. The next candle broke the low and continued downward
→ Confirms loss of buying strength.
3. The bearish candle respected the previous candle's high and did not surpass it
→ Clear sign of weakness at the resistance.
Result
The breakout was a liquidity trap → A bearish reversal movement.

🎯 Practical Summary (As a brief trading rule)
• If the price returns to test the area without breaking the candle lows and resumes upward
→ This is a healthy Retest.
• If the price returns below the area and breaks the lows directly and continues downward
→ This is a Fakeout, and it’s better to avoid buying.
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Summary of Rules
📌 The difference between the Retest and the Fakeout (Quick Rules)
✅ Re-test (Successful Retest) — Possible Uptrend
• The price broke the resistance then returned to test it without breaking the low.
• The red candle was small or a Doji above the area.
• The next candle closed bullish.
• The low of the previous candle was not broken.
• The area turned from resistance to support.
🔻 Meaning: The breakout is valid — The uptrend continues.

❌ Fakeout (False Breakout) — Possible Downtrend
• The price broke the resistance then returned immediately below it.
• The first candle after the breakout closed below the area.
• The next candle broke the low and continued downward.
• The highs became lower (Respecting Lower Highs).
• Buying above resistance failed.
🔻 Meaning: The breakout was a liquidity trap — A bearish reversal.

$BTC Brief Trading Rule
• The low was not broken after the retest → Healthy Retest = Buyable.
• The low was broken after returning below the area → Fakeout = Avoid buying.
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