Breakout vs Breakdown: How to Identify the Real Move

Every trader dreams of catching a perfect breakout or avoiding a trap breakdown. But many fall into fake moves because they don’t know how to read confirmation signals.

In this guide, we’ll break down the difference between real vs fake moves, and how to improve your entries using logic, not luck.

🔍 What is a Breakout?

A breakout is when price moves above a key resistance zone with volume. It's a sign that buyers have taken control.

What is a Breakdown?

A breakdown is when price falls below a key support level with strong selling pressure. Sellers dominate.

📈 Real vs Fake: How to Confirm the Move

Volume ConfirmationReal breakout = Rising volume on green candlesFake breakout = Low or falling volume

Retest LogicA genuine move will often retest the breakout/breakdown zone before flying/dumping

Market ContextCheck index trend, FII/DII data, and global sentiment

Candle PsychologyBig body candles with wicks near zone = powerOnly wicks = fake spike

🤔 Why Most Traders Fail in Breakouts:

They enter too early before confirmation

They buy just because price crossed a line

They don’t wait for retest or institutional behavior

📅 Live Examples in Our Classes

We show real breakout/breakdown plays with chart logic in our live mentorship sessions. Join to learn how to spot the difference in real-time.