False breakout
Updated 2026-09-20
Definition
A move beyond a level that doesn't continue: price returns and often reverses.
Why it matters
It traps those who entered on the break. In SMC language it is similar to a liquidity sweep. Risk is reduced by waiting for the close and the retest.
Practical example
Price exceeds 1.1050 with an 8-pip wick and then closes at 1.1042: a false breakout.
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Educational content, not financial advice. Trading involves risk.