Breakout vs Fakeout: How to Tell the Difference
A breakout happens when price moves above resistance or below support with strong volume and follow-through. A fakeout looks like a breakout but quickly reverses back inside the range.
Before entering, check:
• Volume confirmation
• Candle close beyond the level
• Retest and hold
• Follow-through in the next candles
Never chase the first move. Confirmation can protect you from costly fakeouts.
A breakout happens when price moves above resistance or below support with strong volume and follow-through. A fakeout looks like a breakout but quickly reverses back inside the range.
Before entering, check:
• Volume confirmation
• Candle close beyond the level
• Retest and hold
• Follow-through in the next candles
Never chase the first move. Confirmation can protect you from costly fakeouts.
