Fake Outs Explained - AdCrypto Theory
Hi there,
Basically you need to stop looking at horizontal lines only otherwise you will just be looking at order blocks, you need to expand and start looking diagonally..
In diagonal lines where it closes is more important than the wicks, as wicks generally represent peaks whilst where a market closes/enters is specific to the overall trading range (not always obviously you can get spikes within the last 10 minutes but overall it is true)... Either way, it's more accurate for determining trends when they are moving diagonally as opposed to just break outs from orders..
Buying above a break out is safe or at the bottom range next to support is safe, however buying in the middle opens you up to mistakes as fake outs happen that mislead people into thinking a new trend has formed..
Basically you need to stop looking at horizontal lines only otherwise you will just be looking at order blocks, you need to expand and start looking diagonally..
In diagonal lines where it closes is more important than the wicks, as wicks generally represent peaks whilst where a market closes/enters is specific to the overall trading range (not always obviously you can get spikes within the last 10 minutes but overall it is true)... Either way, it's more accurate for determining trends when they are moving diagonally as opposed to just break outs from orders..
Buying above a break out is safe or at the bottom range next to support is safe, however buying in the middle opens you up to mistakes as fake outs happen that mislead people into thinking a new trend has formed..
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