False Break: The Market’s “April Fools!” Joke

Ever see the price confidently punch through a key level, making you shout, “Aha! It’s finally going!”… only for it to immediately tuck its tail, slink back inside, and pretend it never happened? That, my friend, is a False Break!

It’s the market’s favorite prank. It’s like someone dramatically pushing open a door, taking one look outside, deciding it doesn’t like the weather, and slamming it shut right in your face. Or, even worse, inviting you to follow, and then abandoning you outside in the rain.

A False Break is a lie, a deception, a cruel taunt. It’s the market saying, “Psych! You thought I was breaking out? Nope, just testing your patience!” But for the savvy trader, spotting this little trick means you can often catch the real move when the market finally decides where it’s actually going. Just try not to get too mad when it plays you.