Quick Tip: The 3-Candle Rule for Avoiding Fake Breakouts
Tired of getting faked out? Try this.
The Rule: Don't enter a breakout until 3 candles close above/below the level on your trading timeframe.
Why it works:
Most breakouts fail within 1-2 candles
3-candle confirmation filters out ~70% of fakes
You get a slightly worse entry but drastically better win rate
Example:
BTC breaks above $70K resistance.
Candle 1 closes above → wait
Candle 2 closes above → wait
Candle 3 closes above → NOW you can enter long with a stop below $70K
The tradeoff: You'll miss some runners. That's fine. The trades you DO take will be much higher quality.
Combine this with volume confirmation and you have a solid breakout strategy.
More strategies like this daily inside the group. 📊
