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False Breakout

By LuxAlgoMay 18, 2026

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False Breakout is the definitive clean build of the false breakout study: it watches confirmed swing levels for breakout attempts and classifies each as genuine or failed. A break beyond a level opens a failure window; a close returning to the original side inside that window confirms the trap, while price holding beyond retires the level as a genuine breakout. Confirmed failures are boxed from the broken level to the false-break extreme and labeled there.

How to Trade the False Breakout?

  • Bull Trap: a break above resistance that closed back inside. Breakout buyers are trapped, and the classic read is a fade back across the range.
  • Bear Trap: the mirrored failure below support, trapping breakdown sellers.
  • Zone's outer edge: the false-break extreme is the commonly used stop when fading, since a return beyond it revives the breakout case.
  • Same-bar confirmation: with the Wick trigger, a poke beyond the level that finishes back inside confirms immediately.

Each side fires its own alert, plus a combined any-trap stream.

False Breakout Settings

  • Swing Length (default 20): bars left and right confirming the swings that become watched levels; larger values keep only significant boundaries.
  • Break Trigger (default Close): Close starts the failure watch only once a bar closes beyond the level, the stricter school; Wick starts it on any intrabar poke.
  • Failure Window (Bars) (default 5): maximum bars beyond the level for a re-entry to still count as a failure.
  • Require Heavy Re-entry Volume (default off) with Volume Average Length (default 20): only confirms traps whose re-entry bar trades above its trailing average volume.
  • Show Swing Levels, Show Trap Zones and Show Trap Labels (all default on) control the visuals.

Frequently Asked Questions

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