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How to Recognize False Breakouts

8375 ratings | 557436 views
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. Test and practice your strategies in real market conditions with virtual money. Learn to trade and invest for free. - https://www.trading212.com/en/Practice-for-Free-GBP Download the free native mobile apps now: Trading 212 for iOS - https://itunes.apple.com/gb/app/trading-212/id566325832?mt=8 Trading 212 for Android - https://play.google.com/store/apps/details?id=com.avuscapital.trading212&hl=en-uk Subscribe | Select the Alarm Bell | Hit the Thumbs Up | Share | Comment 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.
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Text Comments (256)
Evans Boro (1 day ago)
Thanks man. You the best
Vinod Kumar P V (11 days ago)
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. :)
Latest Buzz (21 days ago)
So anyone explain me how to recognize false breakout
Krenar Rrecaj (1 month ago)
my concern is that , you didn`t explain all terms exp. min 9.58 , when Dojii candel happen that small candle that take a break mean , that price doesn`t have force to break and for professional trader its good reason to prepare foll sell also tell us that people that was in buying position take they`re profit and go out of position. And also when price break key levels ex. supp usually 80-90% if we done have any fundamentals , it comes to re-test that level again and if we doesn`t see long candel in timeframe 4h or 1h means that price will drop, and will not come back until meets weekly supp or res from previous month. If would like to say also that in forex its everytime IF IF IF , nothing is 100% , big banks are behind this faking price and you need to make sure you are in the same way with them once You do that keep pushing and taking pips as much as your mouth can eat :) haha BE PRO OR DIE DOING SHIT THINGS , for this guy how is explaining i will give 1-10 , 6 only cause he is trying
Louie DiCaprio (1 month ago)
What platform is this
Trading 212 (1 month ago)
Hi Louie, it is Trading 212. You may want to try it for free at www.trading212.com/en/Practice-for-Free-GBP.
Avi Awhad (1 month ago)
Great Video, Thankx a lot David
Imran Mohammed (1 month ago)
Chart time...?15min or 1day
Alex Howard (1 month ago)
The amount of bot comments here is crazy, you should pay for better bots m8
i love swag 123 (1 month ago)
Feel sorry for the saps that pay people to do their trades
yvonfem (1 month ago)
Excellent learnt more off you than anyone else
Bo Swansen (1 month ago)
This is all well and good but the key to these situations is position sizing and startegy implementation. These are great spots to use spreads so you dont get chopped to pieces trying to use a stop. Either use a verticle spread in the direction you choose and you put time on your side so you have exposure with defined risk. Or slap on a straddle and simply take off the profitable side when whichever move happens is exhusted and let the other side ride for future consolidation or you can turn the losing side into a credit spread while you wait. Using stops in these situations is suicide.
GH Jodeiri (1 month ago)
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?
ll c (2 months ago)
you bring out crystal ball, face meca and grab your ankles lol
Jen Lucille (2 months ago)
I do this mistake all the time!
Beeper911 (2 months ago)
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!
Instigator (2 months ago)
I didnt learn a thing, all you did was show examples of false breakouts but you didnt explain exactly what to look for to be able to predict them except for “look at the price action” I was expecting you’d go more into depth about wick lengths etc. and how to actually spot false breakouts using candlesticks.
Brandon Sheakley-Ward (2 months ago)
Would you consider this to be a major support line that has been tested and broken through? It seems if we master support and resistance this will help us gain more insights to what to expect during the possible breakout and bounce back.
Billy Hills (2 months ago)
Just subd
Billy Hills (2 months ago)
Thank you
Highway Tv (2 months ago)
There are 4 extra levels of support on that chart behind you
Nataliya (3 months ago)
very good technical video. thanks!
Arturs Mickevics (3 months ago)
Could you PLEASE make a video on market opening times, different markets etc.?
Trading 212 (3 months ago)
Thanks for suggesting, Arturs.
Ze Cap (3 months ago)
Hi David, how do you choose the time frame in your day-to-day practice?
Trading 212 (3 months ago)
Hello, you may watch this tutorial on how to pick a time frame on the chart - https://youtu.be/UClWf-g1oD0.
Karim Marbouh (3 months ago)
complete bullshit
Rosy Foster (3 months ago)
always making it look so easy to trade
Th30r3t1ca1 phy51c5 (3 months ago)
Thanks for making such an amazing video, I have lost over 300 dollars because of this, but now that you've explained I thank you :) Lots Of Love P_B ♥
shawns bot (1 month ago)
Wow wtf that is alot of money. I lost about $40 dollar i just started my account woth $160
Nobert Stanel (3 months ago)
Thank You.
Real Idiot (3 months ago)
Hello Davy Jones
wegetiteasy (3 months ago)
I'm having trouble getting the right timeframe. The same course, at the same time, reveals different trading actions in different timeframes. In addition, I often lose track when switching between different timeframes. Especially if the screen is automatically rescaled each time. Please explain how you deal with it. I would be very grateful.
Mark Rusher (4 months ago)
Never trust the word of a sixty year old man with spicky hair ☺
Issa Bird (4 months ago)
Cant even spell spikey
Glen Lyon (4 months ago)
Great videos. Do you spend any time looking at fundamentals? In the Apple example you mention that the gap down could be caused by market reaction to results but I wonder if you use knowledge of fundamentals to inform buy/sell side opportunities?
Ash Bishwokarma (4 months ago)
Really thanks for this video..
ASLAM SHADH T (5 months ago)
excellent sir
kareem elmughrabi (5 months ago)
You're amazing!
Lori Favela (5 months ago)
I always watch all your videos. I feel like I can't learn this skill. In the meantime I have to continue to watch these videos.
The Don (3 months ago)
You can learn anything, Lori. Anyone can
quite smacking your tongue!
Hamza Siddiqui (5 months ago)
5:47 Nine Fuckin Morning
Incognito Papito (6 months ago)
Why would you put a stop loss at a high
I believe he is referencing to short selling
kebman (6 months ago)
Great video! Thank you!
Robert Falls (6 months ago)
great video-i learned something!
Peter Cerra (6 months ago)
Thank-you for your insight. What Trading Platform do you use?
Trading 212 (6 months ago)
Hi Peter, the trading app is Trading 212. Trade for free with virtual money at www.trading212.com/en/Open-Practice-Account-GBP. Web app and free native mobile apps for iOS and Android remain at your disposal.
Chiranjeev Lamba (6 months ago)
Best video
Mary Turner (7 months ago)
can you please make videos on top-down analysis and trading using order blocks
Mary Turner (6 months ago)
thank you so much for the reply!! your teachings are so concise
Trading 212 (7 months ago)
Thanks for reaching out, Mary. Your request is appreciated.
Tamim Y (7 months ago)
Wh dont you also talk about volume which gives clues if the its false or real beakout.
Trading 212 (7 months ago)
Hi Tamim, you may want to take a look at these videos elaborating on the Volume Indicators: Volume Indicator Trading Part 1 - https://youtu.be/wfySsU4JO3g Volume Indicator Trading Part 2 - https://youtu.be/depNunVItWE
R Hal (7 months ago)
What is your thoughts on that Gold chart being a shake-out to pop tight stops and create more buyers? @ 7:53
Traders Friend (7 months ago)
Great video!
LAPAROLEDEDIEU \o/ (7 months ago)
False breakouts are some of my favourite trading setup
Salman Mahmood (7 months ago)
Hello Sir, Can i have your email address?
andrews De la hoz (7 months ago)
What program or website do you use to search the graphics?
Trading 212 (7 months ago)
Hey Andrews, the trading app is Trading 212. Check it out for free with virtual funds at www.trading212.com/en/Open-Practice-Account-GBP.
The New Gold Rush (7 months ago)
Hey just found your channel... Great info! Thank​ you I'm learning so much. I have been Trading for 6 months investing for years but trading is a whole new beast...
Flip2 Futures (8 months ago)
Good video. I enjoyed the content
TIALT (8 months ago)
Ema sma vwap is helpful in these cases too
P W (8 months ago)
Many thanks for this video, very helpfull. With what indicator would you combine the analysis you explained?
Benedek Jotu (8 months ago)
Ie. prices can go in any direction with equal probability
Dude D (8 months ago)
Paid educator? or an idiot? trading 10min candles hahahah. Throw the screens in bin and get real trading account, you little bitch
MrChris30134 (8 months ago)
Excellent video. Very well put together. I have one thing to add though. According to the false breakout example with the USD/JPY, the false breakout can also be recognize by the smaller and smaller size of the green candles. This indicates that the buyer momentum is dropping. Wysetrade made a brilliant video on this exact pattern explaining it in greater detail. Otherwise still a great video!
SpartanDrazen (8 months ago)
Breakouts vs Fakeouts
RAMAMURTHI RAGHU (8 months ago)
How to predict Fack break out sir ,
Bittu das (8 months ago)
thank you... 🙂
CHINTU MEDIA (8 months ago)
Great videos but sorry, i didnt found much of false break out thr. Some straight lines would do the magic. Maybe i dont have much of the pro candle stick knowledge or i read them differently. Again thank you for the video. BIG FAN N FOLLOWER.
ravi kabir (9 months ago)
Greaf
Charly Imsel (9 months ago)
I would appreciate if you could come to the point a littler faster I´m a daytraider, I dont have time or 15 minutes talk :D
Uche Aso (9 months ago)
this is the only channel i have found to be really detailing and educational thank you for the good tutorial
My Lord : (9 months ago)
Same Old Story : Read from the Past Candles ... Trading is about Dealing with the Future ... :p
placidbomb (9 months ago)
But isn't that cuz you are simply just drawing perfectly horizontal supports and resistances, and the fact that you aren't using other indicators such as EMAs and Stoch RSIs/RSIs and volume to recognize a breakout?
Cameron Reverts (3 months ago)
placidbomb indicators don’t work
JULIO15747 (9 months ago)
Where can i learn to trade, what is your method of trading?
Trading 212 (9 months ago)
Hi there, you may take a look at Trading 212's Learning Hub - www.trading212.com/en/Learn. Open a trading account and trade for free in its Practice Money Mode at www.trading212.com/en/Free-FOREX-Practice-Account-GBP. Chat with a customer care associate in case any questions arise - www.trading212.com/en/Contact?startchat. The whole team wishes you pleasant and successful trading experience.
Oscar Rivera (9 months ago)
Good vid
John Galt (9 months ago)
Very nice talk.
David Howard (10 months ago)
At around the 8 minute mark play close attention to the inside price bar on gold that retests the 1235 area. That's what ignited the reversal to the upside. Inside and outside price bars as well as engulfing patterns showing up when testing major levels creates an approximate 80% probability trade. The patience required to watch an asset until this pattern shows up is what kills traders accounts.
Regis Oger (10 months ago)
Thank you!!!!
CrownedAceThe1 (10 months ago)
What program is he using?
Trading 212 (10 months ago)
The trading app is Trading 212. Check it out with virtual money at www.trading212.com/en/Free-FOREX-Practice-Account-GBP.
wastedg (10 months ago)
You're good man for sharing the knowledge. Thank you.
Macster (10 months ago)
thanks gave me an idea for breakout trading both genuine n fake
jack byrd (10 months ago)
the term your missing is "overthrow".....  when the price moves slightly past a support or resist.
Dave Kim (10 months ago)
Great Lessons ,thanks for your effort
K Rached (10 months ago)
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.
Notification Squad (1 day ago)
+NiggA Bitch No one is going to take advice with that name
NiggA Bitch (8 days ago)
Indicators are useless (except for MA)
Intern Dingo (10 months ago)
Great vid mate!, cheers
DS-Forex .Coaching (10 months ago)
I say, Bull Shit - no hate intended. Still, only history, thus the future in the past was known. Like the Apple example - not knowing the future, there was exactly the same situation at resistance when price first started pulling back down, and then ruined many people's account with a great gap up. This is, still not the right approach to trading.
Hans Otto (3 months ago)
First i thougth he deleted all the negative commentarys but i found one :D This strategy is shit and more like a coin flipp.
Chill Will (10 months ago)
your videos help out alot thank you very much.
Luis (11 months ago)
Why do you have bots in your comment section? Your channel is great you dont need a fake audience.
Trading 212 (11 months ago)
Hey Luis, we believe all comments are genuine.
Danilo Marvel (11 months ago)
did anybody here got to win some money????? i guess not...
Grow Limitless (11 months ago)
Should've left a bit more hair on top, would look sick
D A B Nation (11 months ago)
the video is gold
Andrew Kim (11 months ago)
He explains very well.
ankit varshney (11 months ago)
super
Zeeshan Ijaz (11 months ago)
Thank you sir. Hats off to you and stay blessed.
Cha Cha (11 months ago)
Superb. -Shao Khan
Brandon Furlough (11 months ago)
I am learning lots just by watching your videos. Do you trade for people?
Perry Saico (11 months ago)
The most informative and educational channel!! Learning a lot from this. Thank you very much! :)
ganeskmr (11 months ago)
Thanks sir.
Raymundo Merino (11 months ago)
the worst way to explain really
Adam Sciberras (1 year ago)
AMAZING THANK YOU!!!
Callum Bolton (1 year ago)
Another great video. Thanks. Who the ... feathers... down votes these videos!?
sachcha88 (1 year ago)
Very helpful. Thank you very much
Jerry O. Smith (1 year ago)
Hello David ! Really enjoy your education videos. Very down to earth teaching.
ViRuSTriNiTy (1 year ago)
Nicely explained.
Hayden Harris (1 year ago)
The graph is not telling you what the market is doing, its telling you what all the underline reasons have accumulatively done to create the graph journey.
Sherif Amer (1 year ago)
David you are the man !! great stuff. do you have a video on order book? do you use order book?
David Jones (1 year ago)
Hi, thanks for the message. No I don't - I think for very very short term trading it can help, but I have never used it as I am not that short-term.
Stoic Tufail (1 year ago)
Why don't you use volume on the chart which is the best way to guess false or real break out!!!🤔🤔 Is it different from stock market?
David Jones (1 year ago)
Hi, it's a habit (maybe a bad one) that I have never got into because in the early days there was no real volume available for forex. But as you say, it's another way you could try and confirm the validity of the breakout.
Hyrule Dude (1 year ago)
What are your thoughts on bitcoins and alt coins ?

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