Key Talking Points:
- False Breaks Offer Great With Trend Trade Setups
- Trading the False Break with Pin Bars
- Trading the False Break with Engulfing Bars
In my prior article on trading the false break strategy part 1, I shared the basic definition of a false break, covered what is the price action and order flow behind false breaks, and how we can trade them.
In this article, I will discuss how you can trade them using pin bars and engulfing bars, along with entry, SL and TP techniques.
To Recap What A False Break Is
I generally define a false break as one of the two following scenarios:
- A break above/below a prior candle that fails to close above/below that