Description
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Most traders focus on the breakout candle. But what if the candle that matters most is the one that comes NEXT?
In this video, I'll show you how to analyse fake breakouts, resistance levels and candlestick patterns to understand what price is actually telling you.
When price breaks above resistance and closes beyond it, many traders see that as a bullish signal. But what happens when the very next candle closes straight back underneath?
Is it a fake breakout? A potential reversal? Or just a temporary pullback before the market continues higher?
I'll walk you through real chart examples and explain the three critical observations that can help you investigate breakout behaviour more objectively.
🚀 FREE Trading Training 👇
🎥 Trading for beginners series: https://www.youtube.com/watch?v=_YVQN6_nkfs
🎥 Tradingview for beginners: https://www.youtube.com/watch?v=ctgqha7O2uo
Forecaster for beginners: https://www.youtube.com/watch?v=3E8KAvn6yJA&
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**CHAPTERS:**
00:00 The breakout candle that fools traders
00:19 Make your prediction: breakout or reversal?
00:35 The next candle changes everything
00:59 Three clues most traders overlook
01:20 Understanding resistance and breakout candles
01:44 Why closing above resistance matters
02:25 The three critical observations
03:24 What happens when breakout traders get caught?
04:18 Real chart example: identifying the setup
05:00 Three price levels to watch
05:35 Does the size of the return candle matter?
06:23 When a failed breakout leads to a reversal
06:52 When the breakout continues higher
08:00 How to test this candlestick pattern
08:18 Three measurements to record
08:59 Why you must avoid cherry-picking trades
09:16 What to look for after every breakout
10:06 Your challenge: test the pattern yourself
10:29 More trading education and resources
Have you ever entered a breakout trade only to watch price immediately reverse?
Let me know in the comments.
And here's another question: Do you think a candle that closes significantly further back inside the range is more likely to produce a reversal than one that barely closes inside it?
I'd love to hear your prediction.
**USEFUL RESOURCES:**
📈 TradingView – Analyse charts and test your own trading ideas:
https://bit.ly/4cKaNa8
🎓 Tier One Trading – Trading education, mentorship and community:
https://www.tieronetrading.com/
If you found this video useful, give it a like, subscribe and share it with another trader who could benefit from understanding price action more clearly.
Remember: Trading isn't about knowing what will happen next. It's about developing a repeatable process, managing risk and making decisions based on evidence.
✒️ Disclaimer:
No part of this video or any of the content in it is legal or financial advice.
Results from what Jason Graystone teaches may not be typical nor expected for every person. Jason is a professional investor and currency trader. This is not a “get rich quick” scheme. Your results may be better, worse, or the same as Jason’s.
All information provided on this website is based on best practices and for educational purposes only.
Jasongraystone.com (JG) is an online educational website only. Information contained throughout the site/video may be provided by sources that are not affiliated with JG.
By accessing this information, you acknowledge your understanding and consent to the foregoing and shall not hold JG liable.
#Trading #PriceAction #CandlestickPatterns #BreakoutTrading #ForexTrading