How to Trade a Fake Breakout: Wait for ConfirmationGoldOANDA:XAUUSDHsan_BenhmedHello Traders, A breakout does not always mean that price will continue in the same direction. So, let’s talk about how to seize opportunities from fake breakouts and how to wait for confirmation before entering a trade. In my previous BTC trade, I identified a breakdown below a key support level. However, I did not immediately enter a sell trade. As discussed in my previous post, I waited for a retest to confirm the breakdown. During the retest, I did not see a strong bearish rejection. Instead, price rejected the bearish move and moved back above the broken support level. This was an early sign that the breakdown might be a fake breakout. I switched to the 15-minute timeframe. As we can see, price formed a rectangle pattern and failed to continue the breakdown. The resistance of the rectangle was then broken, providing further confirmation that the initial breakdown could have been a fake breakout. At this point, the fake breakout was confirmed, and it was time to look for a buy trade! Another Example: Gold I identified a breakout setup on Gold. Price formed a falling wedge pattern, and the resistance level was broken. As always, I switched to the 15minute timeframe to confirm the retest. However, price failed to create a new higher high. Then, the recent higher low was broken, indicating a Change of Character (CHoCH) and weakening the bullish setup. At this point, the idea of upcoming bullish candles was invalidated. 😊So, this time, let’s be bearish trader📉 We should not insist on entering a buy trade just because we see a breakout. Patience allows us to observe the price action and change our view when the market gives us a different signal. The market does not have to follow our initial idea. We should follow the price.