PFH Markets is a global trading platform offering access to forex, indices, and commodities

  You spot resistance at 1.2500. Price tests it three times, then finally breaks through. You buy aggressively at 1.2510  confident momentum will carry you higher. Ten minutes later, price is back at 1.2480. Your stop triggers. What you experienced wasn't manipulation. It was a false breakout  and you became the liquidity that institutions needed to enter their position. This scenario plays out thousands of times a day across every market. Yet most retail traders never understand  why  it keeps happening to them. This guide breaks down the mechanics of false breakout trading, how institutions engineer these traps, and how to start trading the reversal instead of the bait. What is a false breakout in trading? A false breakout (also called a fake breakout or failed breakout) occurs when price briefly moves beyond a key support or resistance level  triggering breakout entries and stop-losses  then quickly reverses back into the prior range, trapping those...