Technical Definition
A price action pattern where the market breaks an important level, lures participants into the wrong direction, and then reverses sharply back inside the range, trapping breakout traders.
Core Mechanic
The market pretends to break out, traps traders on one side, and then moves aggressively the other way.
Expert Insight
Breakout attempt failed.
NatureDeception / Reversal Trigger
Market BiasOpposite to breakout
FamilySingle or Two-Candlestick Pattern
Market Psychology
Before the Fakeout
Lure
Market approaches a known level Traders anticipate breakout Stops accumulate
01
The Break
Trap
Price pushes beyond the level Breakout traders enter Stops triggered
02
The Reversal
Pain
Large players absorb liquidity Price snaps back Trapped traders rush to exit
03
Pattern Anatomy
Pattern Blueprint
1
The Break
Price breaks above resistance or below support.
2
The Trap
Candle leaves a long wick beyond the level.
3
The Rejection
Close occurs back inside the prior range, invalidating the break.
"A clear breakout attempt that fails to hold, resulting in a snap-back into the previous range."
Pattern Rules
Identification Guide
1
Occurs at a clear, visible level
Context.
2
Price breaks the level briefly
The bait.
3
Candle closes back inside the prior range
The trap.
4
Strong rejection wick beyond the level
Rejection.
5
Follow-through in opposite direction
Confirmation.
Signal Confirmation
- Close back inside the range
- Follow-through candle in the opposite direction
- Acceptance away from the broken level
- Failure to reclaim the breakout level