⚠️ Why is it important to spot a fakeout?
A fakeout can trick traders into entering a position on a false breakout, often leading to quick losses 💸.
❓ Why do fakeouts happen?
They’re usually caused by market noise and short-term volatility 📉. Fakeouts often occur near key levels that many traders watch. Unlike a real breakout, a fakeout fails to keep momentum because the market lacks volume or conviction 📊.
💡 Pro Tips:
✔️ Don’t jump in right after a breakout — wait for 2-3 candles to confirm the move 📈
✔️ Use a Stop Loss just beyond the breakout level to protect your capital 🛡️
Have fakeouts ever fooled your trades? Drop your experience in the comments!