What are False Trend Breakouts

This week's strategy video covers a very important scenario that all traders come across - trend breakouts that don't turn out as expected.
Textbooks say that if a trendline breaks, then that's it - another direction is certain. David explains why this isn't necessarily true and he gives us illustrations and examples of the so-called false breakouts and shows you how to identify them.
Making the distinction between trend reversals and false breakouts can make all the difference in your portfolio as they usually happen at critical levels. These can be where support and resistance are determined or the boundaries of trend channels making it harder for traders to determine what's next. This video will help you make that judgement with more knowledge about the different possible scenarios.
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The information contained within the video was correct at the time of recording but may have since changed.
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[@JJFHNREHJEDK]

Summary of video: the stock can do anything

[@amitlakhera2934]

I trapped in this pattern today and hit stop loss, but again I regained it. Very nice and useful information. Love from India David🙂

[@XulTaiff]

I hate false breakouts 😠

[@CT-we2xx]

ANDYWAFFLEZ on Larry Hoover

[@kocic9499]

Who doesn’t

[@ravi23039]

@@kocic9499 when false breakout happens then i Book small losses and reverse my trade

[@shaxrashid1771]

By far the most informative channel. cleared alot of my misconceptions and gave me more confidence on my trades.

[@1018Stacey]

David, quite a few video from you now. You always are so good a explaining things in great detail!

[@pangwa82]

David. Can you make a video about Elliot Waves? Thanks!!

[@villalbait]

Hi Dave. Many thanks for your weekly videos. I love them. Could you please at some time cover concepts or strategies related to Elliott Waves? Cheers.

[@Trading212]

Hi there. Your suggestion has been noted. You can take a look at the "What are Elliott Waves?" section in the Learning Centre at www.trading212.com/en/Technical-Analysis?id=6.

[@villalbait]

Thanks for your suggestion. Oh! I did it already. I also read the best seller of Prechter & Frost, but I still don't see it clear whether Elliot Wave theory in practical cases is useful or not. Maybe you can help

[@tomislavtrgovac5439]

Oh man I finally managed to understand supporting and resistance and volume and now this. How do I combine trends with support and resistance?

[@katengulinga8282]

Brilliant I love that infact I have tested that and works perfectly fine man your a genius I never think of that big ups sir😎

[@vektr6278]

That was very clear and useful for me. Thank you!

[@thechartmaverick]

Love your channel. You guys make trading easy to learn

[@elijahtapiwachipato1960]

Hie Dave why dont you just make a book with all these things??? I really like the way you explain it's very easy to understand I dont know if it is gonna be easy as well to apply.

[@Trading212]

Hi, Elijah. Your results depend on your trading strategy and discipline, as well as on the market.

[@eddyvideostar]

At 2:36 minutes: It is good to keep in mind the horizontals as well as the diagonals as the trader in the video indicated. This helps to keep the bigger picture.

[@sokol313]

There was another trendline that you did not draw. Connect first 2 major lows after the first pullback up treand and you will see that the third low is actually on that second trendline. Just another way to look at that chart

[@drorbenami]

good lesson, very clear ....

[@79HBFerr]

Thank you.

[@Fingaphunk3000]

Great , thanks

[@louishibbs5133]

some traders use trend lines on RSI etc..

[@ricardoheisinger]

Super Useful, Thanks David!!

[@محمدتوكل-ع6د]

Its a great hint and good explanation for me, but can you explain how to avoid false support or resistance line breakouts

[@Trading212]

Hi there. You can take a look at this video: kzbin.info/www/bejne/r3jJcoiflpuVlck.

[@eddyvideostar]

There is no way of knowing for sure: No guarantee is ever given, no matter how sanguine or logical the situation may be.

[@ianwoodward7732]

Clear and precise as always. Thanks

[@jagparuchuri7558]

Very good explanation. Thanks heaps

[@bashasilvian]

Very nice lesson

[@ДаниилСкарин]

Thank you!

[@darinwade7768]

Some times?..False breakouts result in reverse splits..watch your charts and your performance of your postions of your portfolio..

[@weshare8702]

thnxxxxx sirr

Audusd this week. Should have watched this video last week. Bagger

[@itiswhatitis7959]

Thnx for these valuable information ❤️

[@Nate100]

That made a lot of sense thank you

[@BM-il3py]

Hi, any indicators, or forecasts that could potentially pinpoint, that by how far one should "allow" himself to go under the trendline break, before it is clear, that the uptrend is 100% over? The ATR * 3 is - i think - the last resort there, but also, a bit too late to tell, we are out.

[@Macam2macam]

False breakout always kills me. FFFFFFFFFFFFFF.

[@ragamsantika1654]

Its work thanks

[@MegaLilholt]

Do you have a video covering, if it's possible to foresee if the price will form a false break or a true break at a key level? Any patterns or indicators that will tell us the truth where the price will end up moving - through the key level or bounce back? :)

[@Kazzzzzo]

You have a double top at the end of the video. Is that indicating trend reversal?

[@davidjones2452]

Hi - good spot. It if broke that $1216 level then yes. I think it actually did in the end but didn't follow through. You can't win them all.

[@biswasbiswarup]

thanks david

[@moneymanfernando1594]

Good video. Thanks

[@muhammedasifiqbal2272]

Good very good

[@badiejied2254]

thank you for this great video really helped me , can you make a video about short term trading or binary option ? PLZ

[@Trading212]

Hi, Badi. Your comment will be taken into consideration. Thanks for posting it.

[@gbengabayor4725]

Can you make a video on break and retest strategy?

[@desireeking3021]

awesome thank you!

[@waligeymailoobo8651]

thanks

[@dejviddejvich573]

and what if it's not a false trend,but new bearish trend,how to know?

[@shaikhumar6060]

had u made a video on how to use MACDs, If not plz make it.

[@Trading212]

Hi, Shaikh. Thanks for reaching out and for sharing your suggestion. It will be taken into consideration, as always. Watch this space for new videos every week.

[@scorpioindigoo]

Trade naked fam!!! fuck indicators they catch the trend late...learn how to read candle sticks!!!!

[@shadmansudipto7287]

Scorpio Indigo also moving averages help a lot

[@eddyvideostar]

To Shaikh: Scorpio Indigo has some issues regarding his mental condition. How can one listen to a person as this? Indicators, when utilized correctly, saves the trader from too early anticipatory failing entries.

[@pasta8793]

if the "broke below" a trend line, then does the slope of the trend line decrease and follow that new low? I can never quite grasp where the trend line actually goes and when to move it in accordance with price action

[@rainbow1965]

David your explaning ways are great and i love it ! however its just a shame your trading platform reputation is a bit on the lowside otherwise i would use trading 212 myself !

[@Trading212]

Trading 212 is quite a reputable broker. All traders and investors are always treated fairly. Should you have any questions or concerns, please feel free to start a live chat and address them - www.trading212.com/en/Contact?startchat. The customer care team members will gladly help.

[@honchoeric8292]

can this work on 1D and 4HR charts?

[@satya128fly]

what is the trading platform you use... it looks like u r using CTRADER.....!!!! am I right?

[@Trading212]

Nope, it's Trading 212, you can check us out with a free demo account -> www.trading212.com/en/Free-FOREX-Practice-Account

[@Zak09876]

Hi, Can you make a video of Fibonacci + moving average strategy please.

[@Trading212]

Hi, Zakir. Please take a look at the following videos: How to Trade Retracements - kzbin.info/www/bejne/gauZXmukhrGFfq8 What are Fibonacci Retracements - kzbin.info/www/bejne/j6XVkJKhgLCMeKM How to Trade Moving Averages (Part 1) - kzbin.info/www/bejne/aoOVdHeYrJmabpo How to Trade Moving Averages (Part 2) - kzbin.info/www/bejne/a6OwnISrp8urqKc Using Moving Averages - kzbin.info/www/bejne/pqu3hmqAn72bntk Trading with Simple Moving Averages - kzbin.info/www/bejne/Y2iTgoSMmNSEmJY

[@Zak09876]

My main concern is "brokers hunt clients stop loss orders" if a trader keep winning.

[@Trading212]

The results depend on the traders' strategy and discipline, as well as on the market.

[@ayushkumarrathi]

What other tools should be used with this to justify this is not false breakout ?

[@Trading212]

Hi, Ayush. You can watch those videos on the topic: Trading 212 Trading Strategies: How to Trade Breakouts - kzbin.info/www/bejne/r3jJcoiflpuVlck Trading Breakouts Strategy - kzbin.info/www/bejne/aKnVlZ15n9J_pqs

[@bhaveshsoni9799]

Real

[@darinwade7768]

S&P500 in the USA is heading for longer than expected sale trend now is the time to develop strategies to avert losses which I have developed 🌈🌈🌈🌈

[@trikhotso4785]

wow

[@alonzorogers5889]

Had this happen to me just this morning...blew my whole account

[@louisvuittondonvg9040]

lol wtf

[@eChrisBC]

Stop loss hello?

[@lifeofarealhuman1425]

@david Jones, I love your videos! Honest. Soon you will make me trading 212 customer.. 😇 @zish

[@omare7475]

he got it all wrong because it wasn't a trend, it was ranging.