I checked the market early this morning and slept for a while after 7 o'clock 🤣 Just got up to catch up on the updates.

7.27 afternoon trading
Today, I won't talk about structure, pressure support levels, and trends. I will upload the images for everyone to reference. If there are any improvements needed, feel free to raise them for discussion and learning together.
Today I mainly want to share my thoughts on the issue of false breakthroughs. I don't know if anyone else was popping champagne and feeling happy like I was yesterday afternoon 🤣 Yesterday afternoon, Ethereum had a strong bullish breakout at 3750, reaching 3781, but in the end, the four-hour closing formed a long upper shadow and closed around 3737. Early this morning, around two or three o'clock, I was also watching the market; Ethereum peaked at 3793 but closed around 3748. I saw another failed breakout and decided to go to sleep. Additionally, I noticed many people were very happy when Ethereum's strong bullish candle was pushing up, shouting about a huge surge, claiming it would hit 4000 and reach new highs, but then we got a false breakout and returned to square one, resulting in wasted effort. So, I want to share my perspective:
How to determine a true breakout?
1️⃣ From a structural perspective:
Generally, after a bullish candlestick breaks through a resistance level, that resistance level will convert into a support level. If it subsequently retraces to this support level and tests its validity, resulting in a rebound, it can be considered a true breakout. However, if it retraces to this support level and then directly falls below it, it is considered a false breakout.
2️⃣From the time level:
Typically, the higher the time frame, the greater the accuracy. Generally, we look at whether the four-hour time frame can break through and close above the resistance level. If the four-hour time frame breaks through the resistance level and then comes back to test that resistance level for support and rebounds effectively, then this can be considered a strong possibility of a genuine breakout (though not absolute, as even on the daily time frame there can be false breakouts). But why do we also look at smaller time frame candlesticks? It's simple: if you only look at the four-hour chart, by the time the four-hour candle closes with a strong bullish signal, the price might have already shot up significantly. Opening a breakout position then would be too late.
3️⃣ From the candlestick pattern:
Long upper shadow: After a big bullish candlestick pulls up and then drops down, closing below the resistance level, it is considered a false breakout.
Yin wraps Yang: A bullish candlestick rises, but the next candlestick is a large bearish one that directly comes down and engulfs the bullish candlestick, considered a false breakout.
A breakthrough followed by a pullback confirming effective support, along with a strong bullish breakout on the four-hour chart that does not fall below the resistance level, can be considered a true breakout.
As of the time of posting, Ethereum has truly broken above 3750. Below, I will provide a four-hour chart, and you will see that all previous four-hour closing candles had long upper shadows indicating false breakouts. The only exception was when I went back to sleep this morning; at 12 o'clock, a four-hour bullish candle closed above 3750. Next, we will see if it will retest 3750. If it does not retest, we will observe the resistance level at 3860 above. If it does retest, we will see if the support level at 3750 holds. If the support holds, it will continue to test 3860.
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