$How Fake-Outs Happen:
1. Price breaks a key level or pattern boundary (e.g., resistance).
2. Traders enter positions expecting a sustained move.
3. Price quickly reverses, moving back inside the pattern.
4. Stop-loss orders are triggered, amplifying the reversal.
How to Avoid Getting Trapped:
Wait for confirmation: e.g., a candle close above resistance or multiple confirmations.
Use volume analysis: Low volume breakouts are more likely to be fake.
Set tight stops: But outside the noise range.
Watch for retests: A breakout that retests the pattern boundary and holds is more trustworthy.
