🚨 Does every breakout above resistance mean the price will keep rising?
Not always! ⚠️
There is a trading phenomenon called a fakeout.
📌 What is a fakeout?
It’s when the price moves above a resistance level briefly, then quickly falls back below it, making traders think a new upward trend has begun.
🔴 How can we spot a fakeout?
The price breaks above resistance, then falls back below it.
Low trading volume during the breakout.
A candle with a long upper wick appears.
The price fails to stay above the resistance level.
🟢 How can we improve our chances of spotting a genuine breakout?
Wait for the candle to close above resistance.
Monitor trading volume.
Wait for resistance to be retested and for the price to hold above it.
💡 Important tip: Don’t rush into a trade as soon as you see the price move above resistance—confirmation matters more than speed.
🎯 Question of the day:
Have you ever entered a trade because of a fakeout, only for the price to reverse against you?
⚠️ Educational content only; not a recommendation to buy or sell.
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