How to spot Fake outs Forex
A Fakeout (Fake Breakout) is a form of manipulation to trap breakout traders.
If a breakout trader sees that there is a big breakout that breaks through a strong resistance or support, he thinks it will continue to break into the end of the world.
However, the price makes the reverse and then it comes back to the stop loss of the breakout trader.
Fake Out Forex
Back in the days when I just started trading, I always reacted immediately to a breakout.
Then I lost continuously because the breakout turned out to be a fake-out. But how do you react to a breakout? The key is to have patience and to wait for the signals. Often there will be a retest before a real break takes place. Do you already see that the price reacts to the Supply or Demand bias as the example below you can almost be sure that it is a fake-out.
How do you recognize Fake Out Forex
The Fakeout must have some resistance/support wicks.
It will always FakeOut to the base supply and demand above the resistance wicks or under the support wicks.
Wait for the Signals to recognize a possible Fake Out
There are many more signals to which you can recognize a possible fake-out. I can not go into this blog too deeply in this subject, but it is important that you learn to read the market.
You have to be able to feel the market and recognize changes in behavior, for example.
That is why it is always smart to start with 2 or 3 pairs that you can optimally analyze.
Get to know the pair and get to know their movements.
Fake Out Forex
Even I stupidly enough step into a fake-out still sometimes. But do you know why? Patience!!!!! trading requires a lot of patience.
Only then can you get the most mistakes out of your trading style and you will get more take profits than stop-losses!
Well come on and start learning to read the market just like a very good book.
Get to know it inside and out.
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Great blog article man! Keep going the good work 🙂
Hello Kev, I’m from Brazil, I just have to thank you, it’s a shame that the language here is not the same as yours, if it were I would go into your area. God bless you
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