Strength of breakouts are not gained immediately but is build gradually. However, retail traders are groomed to react to any breakout immediately and a bulk of traders enter the trades out of FOMO. FOMO (fear of missing opportunity) is tendency of a retail trader to react to abrupt and sudden move of price in urge to avoid missing out the rally. That’s the reason that many breakouts end up in false breakout because by time strength is gained, stock is already loaded with retail traders entering the trade at same time.
False breakouts can be avoided if based on past behavior of the stock, it can be estimated that strength is gained in what price value.
Whenever there is breakout of decision range, you will notice a blue line appearing to safe guard you from false breakouts.
Range between purple lines and blue line is to allow retail trader to safely assess the situation and avoid entering false breakout.
In most breakouts, bears tend to test again their level before giving it up to the bulls. Strength is said to have been gained by the bulls once price closes and sustains above blue line. If it does not sustain, a trader must let bears test their level once (shown by red line) and let bulls exhibit strength again by again breaking out above blue line.
Once price is above blue line, trade is taken with Red line as stop loss (exit is price closes below red line). Vice-versa for sell side trade.