Why Do We Have False Breakout

false breakouts occur for a number of reasons but there's always winners and there's always losers. The big guys have the advantage here as they can see the order books for the retail and the big guys. If there is a big sell order 20 pips above resistance it is worth their while taking price up 10 pips and then selling to all the stops that get triggered from 10 to 20 pips up. Some of those stops are people entering trades, some are exiting trades. The next logical thing to do is take price back to where the stops are for the people who just opened a trade. They can afford to do this from the profit they just made.

Even real breakouts almost always retrace. When you see resistance become support then it might be worth opening a position.

steve

I think because it is market that is moving not only your pair. For example when you would see a GBP/USD break out it could be a nice trendline touch/pullback at EUR/USD and maybe dowjones... they all effect the USD index but you can't see them when you only look at GBP/USD.

there are a lot of factors that effects your pair.

usually, when you found false breakout it will continued later (sometimes required 2-3 next candles) to be real breakout.

A person who doing trade breakout when they found a false breakout they will stay away from the market for a moment because a false breakout could be followed by real breakout in the next candles .... I found this is true and I did exit the market after a false breakout happened.....

*false breakout on long and short position are happened on close range price (sideways)

This is very true. Gold and Oil prices also have a big influence on forex and will push and pull forex pairs especially the usd ones. Not sure how often they turn price when it happens to have just broken resistance, probablly depends on TF and what you classify as a breakout.