How to Recognize False Breakouts

In today's video David Jones will be talking about one of the worst trading scenarios and that is the False Breakout.
Textbooks say that if a trend line breaks, then that's it - another direction is certain. Well, that's not exactly true. Patience is key.
Making the decisions in the right time at the right price makes all the difference. This video will help you make that judgment with more knowledge about the different possible scenarios.
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At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 80% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

[@simmsman413]

I love this guys teaching methods, he's very calm and precise

[@claudiam427]

Delighted to have found you. Your explanations are concise and very helpful!

[@Trading212]

Hi, Claudia. Great to see you appreciate the tutorials. Make sure to subscribe to the channel and always be up to date with the latest videos - new content every week.

[@murtalabalaumar4194]

Exactly i met with this one time. Thank for clearing

[@brendan4272]

Videos like these are truly invaluable to struggling but driven people. Thank you mate.

[@Proteus6684]

Right on bro

[@nathanielsmith7545]

Exactly

[@vinodkumarpv]

Trading 212 is one the best channels for learning to trade in the stock market. The honesty and sincerity of the presenters are like a fresh breath of air compared to so many channels who just boast of their achievements and make it look easy or make it look so hard that you are forced to buy something they are selling. Keep up the good work and hoping for an interactive webinar soon. :)

[@murrayfarquhar3025]

Mate. You’re a legend. Thank you

[@matchroom.futbol]

this is the only channel i have found to be really detailing and educational thank you for the good tutorial

[@nicovornicu2573]

That's a great channel! Thanks for sharing all these valuable information. Keep up the great work :D

[@JerryOSmith]

Hello David ! Really enjoy your education videos. Very down to earth teaching.

[@ZenVestIQ]

Great video. I have seen tons of examples of false breakouts, this knowledge really helps.

[@ricksreels]

Very informative and helpful - even 2 years later. Thankyou!

[@perrysaico]

The most informative and educational channel!! Learning a lot from this. Thank you very much! :)

[@Zeeshanijaz844]

Thank you sir. Hats off to you and stay blessed.

[@gfiveforfun]

Love you to hear more. You are the first person I found that speak teachnicaly about binary trading

[@nathanielsmith7545]

Thank you!! It's good stuff people like yall do. Helping a lot of traders (including me) with this

[@wastedg]

You're good man for sharing the knowledge. Thank you.

[@AswinHaridasOne_77]

I've watched only 2 videos of you sir, and I'm already a fan 👍. Easy to understand and nice way of explaining.

[@eddyvideostar]

Trading 212: David: I sincerely appreciate your effort in regard to this video, especially where you apply the ultimate in common sense to trading as it should always be. At the video time of 14:10 minutes, even you stress that this doesn't work all of the time (to be fair, 50/50 percent). This may sound trite, but this is the most salient sentence of all trading training videos: the reason we apply stops and profit targets -- for, *we will always know that these will work -- ALL of the time.*

[@vk01221]

I know I didn't lose a lot of money but the false breakout got me. Didn't wait for the evening star confirmation and convinced myself the trade would go in my favor. My lot size was only a 0.05.

[@aksk8629]

A very concise, clear and helpful video. Thank you!

[@keithp7010]

Great videos-Ive learned more in a week watching your vids than I have in 6 mos of other vids. Thanks!

[@NavShay]

I like the calm attitude of David, he makes it look easy

[@Gergedanification]

Very clear and simple. Thank you!

[@kebman]

Great video! Thank you!

[@dennish300]

Excellent advice on stop loss placement. Thanks for the video!

[@rombusworkmoney22]

Wow! KZbin has just brought me back your channel, many months after I added your channel to my list of sources to learn from (and your channel is the first in that list) :) And the timing is good as I have learned much since then.

[@Trading212]

Welcome back 🙌 It's nice to hear you're enjoying our content.

[@Shinxux3]

This channel has taught me so much in just one day. Thanks!

[@MrXuanzong]

thank you! very clear explanation and easy to understand presentation

[@ahmedgawad7729]

Thank you for your simple and helpful way.

[@bryngarlinge1551]

great video learned soo much

[@damirhorvat2129]

Such a quality content. Very self explanatory

[@aviawhad1084]

Great Video, Thankx a lot David

[@murugnimai]

You are helping us so much.. thank you

[@malaykp3119]

great video, a clear and comprehensive picture of false break.

[@Xmillionways]

Thanks for sharing a really really great knowledge. I appreciate it

[@JLH1956]

Thanks for explaining things a novice could understand. Subscribed.

[@ybellones]

Your explanations are very helpful! Thank you!

[@stocknerdz4086]

nice video, there are so much ways to trade false breakouts and these are definitely great examples.

[@adamsciberras8343]

AMAZING THANK YOU!!!

[@chrissal5736]

Thank you so much. Very easy to understand

[@sachcha88]

Very helpful. Thank you very much

[@dmitrypekov1247]

David, I absolutely adore your videos and the manner in which you bring the information. I had a question about your small monitor on the right, do you have it set up as a touchscreen/serving any non-standard purpose?

[@nazanintorabi1406]

I just wanna say that was wonderful thank you very much nobody has taught this as well as you , thanks sir

[@animatedchildrensvideos]

Thank you for sharing your knowledge. You explained this very well.

[@j1shin]

Nicely explained.

[@MFXCenter786]

Great video. very detailed and must know information. Thanks a lot man.

[@TRADERSFRIEND]

Great video!

[@orionstafa]

Thank you for sharing your knowledge, I been Trading since 2008 and still find all your videos extremely helpful and reminders of lot of small things that I have forgotten, I really appreciate all of your videos, god bless and stay green

[@TheEloim_]

You profitable?

[@evansboro1758]

Thanks man. You the best

[@rickyyoungbillionaire7147]

I'm learning a lot from these videos I'm a beginner

[@davidjulian4575]

thank a lot!

[@williesapp6116]

your videos help out alot thank you very much.

[@evangelosgallos9224]

Nice video and very good tips.

[@salamtoallathome]

Great videos and very easy to follow. thanks for video.

[@stevendiep1919]

great video, very insightful thank you!

[@peterachoki6909]

Thanks for sharing this knowledge on recognising false breaks

[@Trading212]

Nice to see you are happy with the video, Peter. Subscribe to the channel and stay tuned for more content from Trading 212.

[@basharalajrad]

thanks for sharing your great informations.. waiting for more videos

[@AB-qv9ku]

Great video. Most times the false breakout is what actually happens. Unless the breakout is confirmed with major momentum and on a fractal price zone.

[@proscons2440]

Thank you very much for this video David this is really helpful :)

[@Trading212]

You are welcome, Rupert. Stay tuned for more.

[@goon3502]

thank you for this video !

[@todij]

Great and clean information !

[@xs2solutions]

Thanks for the video. It is really helpful. Can you please make video on trading with bolinger band for intraday and short term trading

[@Trading212]

Hi, Kamlesh. Your suggestion has been noted. Thanks for taking the time to share it.

[@ganeskmr]

Thanks sir.

[@yvonfem]

Excellent learnt more off you than anyone else

[@letoubib4811]

Excelllent british accent.. superbe explanation..!!! Great Dave...!!!

[@eamh4196]

I really like british accent..hehe

[@rahulkatare802]

What is British

[@xenon3016]

Great Lessons ,thanks for your effort

[@remickn]

very good technical video. thanks!

[@PPPE139]

Many thanks for this video, very helpfull. With what indicator would you combine the analysis you explained?

[@ashbishwokarma2505]

Really thanks for this video..

[@CarthagoMike]

Still incredibly useful 4 years down the line!

[@joshdavies4586]

Another great video! It would be really helpful if you could explain fib fans, arc, and circles in future videos!

[@Trading212]

Thanks for your contribution, Josh. Will take your comment into consideration, as usual.

[@nnara5097]

Thank you David

[@krach5672]

Summary: The answer to "How to recognize false breakouts" is "You wait a bit". The title should really be, "How to profit from false breakouts". Much better clickbait wording and the answer is actually in the video. The answer: "If the support gets broken, you wait a bit to verify. When it comes back to the resistance (previous support), you enter a position with a stop-loss just below the resistance." There you go. Saved you a bit of time. Now learn something much more useful like RSI.

[@niggabitch7045]

Indicators are useless (except for MA)

[@IDontPostPorn]

@@niggabitch7045 No one is going to take advice with that name

[@kevtherev8194]

Thanks for the Summary. (However, Rsi is a loser)

[@Wolf_The_Dentist_Stansson]

Nothings a loser with a proper exit strategy, money management and position sizing. You can be profitable by flipping a coin to decide your trades if you wanted

[@rajkumarmeena5974]

in unidirectional trending market and volatility index is low, RSI fails pretty badly.

[@kabelodanielmetsing6115]

I love the way you teach

[@anesthetizedangel4845]

Well done.

[@khalidelgazzar]

Great video. Thanks

[@stevea5743]

Awesome Vid

[@_anonymouskenitra5799]

Very very very informative Thank you for sharing

[@xt225]

Good stuff, thanks.

[@johngalt1027]

Very nice talk.

[@andrewkim7051]

He explains very well.

[@litehill]

thanks for really helpful info. with regards from Vienna

[@avichavan2457]

hi im from India.. your video help lots... i learn lots of technique watching your video..

[@heyitsmrbigd8010]

hi I'm from america

[@tjsylla]

212 you guys are a trove of knowledge...straight up great content..thanks so much for the good info...definitely learning so much!

[@gilbertcandco]

T5yll4 sock/meat puppet?

[@edwingoh824]

Trading breakouts 1.) See if price breaks support or resistance line. 2.) Wait for next candle confirmation to enter the breakout. 3.) Stop loss place just below or above the support or resistance line. Trading false breakouts 1.) After price breaks support or resistance line wait for next candle confirmation to enter the price reversal. 2.) Stop loss place just below or above the support or resistance line. i saw your youtube video tutorials on trading breakouts and false breakouts, these are the rules i understood from your videos on breakouts and false breakout. Would it be better to set a buy stop position just above the breakout candle during a breakout on a resistance line at the same time set a sell stop position just below the resistance line candle, from this if a false breakout occur by sell stop position would be triggered and if a breakout took place in this scenario my buy stop position will be triggered and the trade would still go in my favour whether it continues to go up into a breakout or goes back down into a false breakout.

[@bittudas2407]

thank you... 🙂

[@ghjodeiri8889]

Dear Mr Jones I'm from Iran really your videos are very help full and really I enjoy watching your videos will you please talk about the parabolic dots also?

[@Redj666]

Thank you!!!!

[@BWater-yq3jx]

9:39 Wouldn't expect that to break out. Would expect reversal. Classic pattern.

[@kareemelmughrabi4241]

You're amazing!

[@lifeisbeautiful7361]

loved it!

[@ahmedam77]

Very helpful!

[@powerofmarkket]

Nice guy I love his knowledge

[@paulvenneman7539]

great video's, they brought me from crypto noob to trading nicely in under a month.

[@beeper9119]

Hey there, first time viewer here. I really appreciate the content and advice. One thing you haven't mentioned, and maybe that's because you're looking at hour candles and days or weekly candles, but volume. You haven't mentioned anything about the volume with trades during these breakouts or false breakouts. I wanted to hear your opinion on volume with breakout predictions and why you didn't bother mentioning this. Happy green days!

[@nobertstanel9428]

Thank You.

[@kennethmackie5891]

Well presented David. Thank you. Would you say a retest of a breakout level increases chances of a trend continuation?

[@joseperezq]

thank you very much for this amazing material, now i wonder, if its posible to apply action price within any timeframe like 30min or if its only good for 5 and 1 minute frames. thanks

[@--valkyrie--]

Another great video. Thanks. Who the ... feathers... down votes these videos!?

[@taivonrashford6439]

great video well explained