Watching the flickering red and green candlesticks on the screen, I suddenly realized—there's a carefully planned layout behind it all by the market makers.

I still remember how awkward I was when I first entered the scene. Staying up every night watching the charts until dawn, rushing in when I saw a bullish candle, running when I saw a bearish one. After three months, my principal shrank by 40%. It was only after a liquidation that I realized: most retail traders look at candlestick charts that are actually the "script" given to us by the market makers.

Last year, when BTC dropped from $60,000 to $58,000, I avoided the subsequent 15% plunge by recognizing false breakout traps early. Today, I want to break down the three signals that market makers fear most retail traders will learn.

**How Fake Breakouts Trick You**

The most common scam scenario you’ve probably encountered: the price suddenly breaks through a previous high, and the group chat instantly erupts with "It broke the previous high, it's going to take off!", you get excited and follow the trend, only to see the price plunge straight down in the next second, dreams shattered at the peak.

This is the "fishing line" tactic used by market makers—using fake breakouts to shake out quick-reacting retail chips.

**What Is a True Breakout**

The key is to look at two hard indicators.

First is trading volume. During a breakout, the volume must be at least twice the average daily volume of the past three days—that's the baseline. Market makers can draw charts, but they can't fake real trading volume—that objective data of sustained volume cannot be fabricated. Breakouts with no volume are just scams.

Second is confirmation period. Only when two complete 4-hour candlesticks close above the resistance level is it considered a valid breakout. If the price just pokes above with a tiny spike, that’s only a probe.

An example I personally experienced in January 2024: when ETH surged toward $2100, there was a false signal of a volume-dry breakout. The community was all bullish at the time, but I noticed the price broke through while the volume didn't follow—so I chose to stay on the sidelines. Not long after, the price was hammered back down.

By spotting these two points, you master the core tips to see through the traps set by market makers.