Sweep or Real Breakout? The 3-Candle Rule

Oct 02, 2026

A simple rule for telling a fake breakout from a real one, useful for traders who keep getting trapped at key levels.

  • When price pokes above resistance and snaps straight back down, that is a sweep, not a breakout.
  • The tell is a long wick with a fast move back below the level, usually within one to three candles.
  • A real breakout holds: wait for three candles in a row to close above the level before trusting it.
  • A sweep is just a pause that refuels the old range; a hold is the start of a new trend.

Outlook: The test at any broken level stays the same — did price close and hold, or did it stab and come back home.

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