A breakout that quickly reverses

A good way to filter fakeouts is to...

Wait for a close beyond the level

Breakouts and fakeouts

Price smashes through a level everyone is watching. Breakout! Or is it? Some of the most painful trades start exactly here.
A breakout is when price closes clearly beyond support or resistance and keeps going. It can start a big new move.
A fakeout is a breakout that quickly reverses back inside the range, trapping everyone who jumped in.
Filter 1: wait for a candle to close beyond the level, not just poke through with a wick. Higher timeframes give fewer false signals.
Filter 2: check volume. Real breakouts usually come with more trading than normal. A breakout on thin volume is easier to fake.
Common mistake
Mistake: buying the first touch of a level in excitement, with no stop. If it's a fakeout, you're stuck hoping.
Key takeaway
Wait for the close, check the volume, and always place a stop loss in case it's a fakeout.

A fakeout is... A breakout that quickly reversesPrice pokes beyond the level, then falls back inside the range.
Breakouts are more trustworthy with... Strong volumeMany traders backing the move makes it harder to reverse.
A good way to filter fakeouts is to... Wait for a close beyond the levelA wick can poke through; a close shows price held beyond the level.
Price pokes above resistance with a long wick, then closes back below. That looks like... A possible fakeoutPrice couldn't hold above the level by the close: a classic warning sign.