Trendline Breakout Not Holding – What Am I Doing Wrong?
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Hey everyone, I’m new to TA and just tried drawing my first trendline on BTC/USD 1H. Price broke above it, I entered long, but then it snapped back below and stopped me out.
Here’s what I did:- Drew trendline from swing low at 110 000 to next low at 110 500
- Waited for a full 1H candle close above the line
- Entered at 110 800 with SL 110 200
What did I miss? Should I use a different timeframe or adjust my SL? Thanks in advance!
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Welcome, Alice! A few thoughts:
- The 1H can be noisy—try confirming the 4H trend first for the bigger picture.
- I usually wait for a retest: break above → pullback to the line on a 15 m chart → entry. Gives much stronger confirmation!
- Your SL at 110 200 is only 600 points away. Check ATR—if ATR(14) is around 1 000, you’ll get stopped out by normal volatility.
Hope that helps
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Also, watch for wick “spikes” above your trendline. Only trust a breakout once a full 1H candle closes above it; ignore quick poke-outs!
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If you’re still getting false breaks, add a filter like the 50 EMA on the 4H. Only take long breakouts when price is above that. Cuts out a lot of noise!
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Thanks @Bob_The_Trader & everyone! I’ll try the 4H trend + 50 EMA filter and widen my SL based on ATR. Really appreciate the tips
