Master the Intraday Fakeout Continuation Strategy: A Smart Approach for Traders

Looking for a high-probability intraday setup? This Fakeout Continuation Strategy is designed to align with smart money moves — capitalizing on liquidity grabs and market manipulation that trap retail traders. Here’s a simple yet powerful breakdown of how it works:

How the Strategy Works:

Watch for a fakeout below key support levels (such as the previous day’s low).

Liquidity is taken during the New York session open as the price dips below support to trigger stop losses and collect orders.

Price quickly reverses back above support, forming a break block (a critical bullish zone).

Entry is triggered on the retest of this break block (your buy zone).

Stop-loss is placed just below the block, with a target at the recent swing highs.

Aim for a clean 1:2 risk-reward ratio.

Entry Checklist Before You Trade:

✅ Confirm the higher timeframe trend (H4/Daily) is in your favor.

✅ Identify key fakeout zones such as LDL (Last Day’s Low), LWL (Last Week’s Low), LML (Last Month’s Low).

✅ Look for additional confluence using tools like FVG (Fair Value Gaps), imbalance zones, and Fibonacci retracement.

✅ Ensure the liquidity grab is clear and convincing.

✅ Execute the setup during the New York session for optimal trading volume.

Why This Strategy Works:

By waiting for the market to reveal its true direction — after manipulating weaker hands — you position yourself alongside institutional flow, rather than against it. This strategy favors patience and precision, aiming for 1-2 high-quality setups per week instead of overtrading.

Final Advice:

Don’t chase every move. Let the market show its hand before you place your trade. Backtest this setup thoroughly, refine your execution, and stick to your plan.

Written by NoriFtm for the Binance Square Write to Earn program.

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