Why apparent confirmation can fail.
| Concept | Explanation | |---|---| | Gap up | Opening or trading zone materially above the prior session's range. | | Gap down | Opening or trading zone materially below the prior session's range. | | Gap breakout | A breakout that occurs through a price gap. | | Bull trap | Price breaks above resistance and quickly reverses lower. | | Bear trap | Price breaks below support and quickly reverses higher. | | False breakout | Price moves beyond a level but fails to hold and returns to the prior range. |
Key idea: The first move beyond a level is evidence, not final confirmation. Observe whether price holds, retests, and attracts participation.