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False Break

When is a breakout not a breakout? When it is a false break. The retest of a prior extreme, or a trendline test, probably won’t extend very far if volume accompanying the break is weak or weaker than normal. With the exception of ascending and descending triangles, a false break is usually in the opposite direction of the actual breakout yet to come.

Following are examples of false breaks from various patterns. Each is linked to more examples of the pattern:

Ascending Triangle

Channel

Complex Triangle

Descending Triangle

Double Borrom, Double Top

Head & Shoulders

Island

Wedge

Rounding Bottom, Rounding Top

Symmetric Triangle