What metrics best indicate whether a breakout is real or a stop-hunt?
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Advanced traders validate breakouts using volume expansion, liquidation clusters, delta divergence, and HTF (higher time frame) closes. A true breakout typically follows through with rising open interest and positive funding alignment, whereas stop-hunts show rapid wicks, OI wipeouts, and a mean-reversion back into the range.
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True breakouts come with strong volume and clean retests — stop-hunts rarely do.
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Order-book depth and liquidations data often reveal whether the move is genuine.