Price pokes beyond a range edge, fails to find follow-through, and snaps back inside. Breakout traders are trapped and fuel the move the other way.
How to identify it
- Break beyond a clear high or low
- No acceptance: quick close back inside
- Reversal candle or strong rejection wick at the extreme
Entry
Fade the break once price closes back inside the range.
Stop loss
Beyond the false-break extreme.
Target
Range midpoint, then the opposite edge.
Invalidation
Price re-breaks the level and holds outside.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your failed breakout / false break trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.