See my returns and portfolio breakdown. Follow for investment tip#VoteToListOnBinance Predicting Reversals and Fakeouts: A Trader's Guide*

Reversals and fakeouts are two of the most critical concepts in trading. A reversal occurs when the market changes direction, while a fakeout is a false signal that can lead to losses. In this article, we'll explore how to predict reversals and fakeouts, helping you make more informed trading decisions.

*Reversal Patterns*

Reversal patterns are formations that indicate a potential change in market direction. Here are a few key patterns to look out for:

1. *Head and Shoulders*: A bearish reversal pattern characterized by a peak (head) followed by a lower peak (shoulders).

2. *Inverse Head and Shoulders*: A bullish reversal pattern with a trough (head) followed by a higher trough (shoulders).

3. *Double Tops and Bottoms*: Formations where the market tests a level twice before reversing.

*Fakeout Patterns*

Fakeouts are false signals that can trap traders. Here are a few patterns to watch out for:

1. *Bull Trap*: A false breakout above resistance, followed by a sharp decline.

2. *Bear Trap*: A false breakdown below support, followed by a rapid rebound.

3. *Stop Hunts*: Price movements designed to trigger stop-loss orders, often followed by a reversal.

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