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Fakeout

When should we sell on EURUSD?EURUSD broke outside of the hourly trend but still remains in a downside direction. Today we could see a further upside move above 1,1900, however this will only last for a short period of time. It will activate the buyers and turndown the sellers in the market. Don't rush to buy! Wait for the higher probability scenario which will be a downside move. This downside move should be an impulse. The US dollar news today are great opportunity for this. If price goes above 1,1900 and it then reverse, that will be a perfect selling opportunity.
Short
by ForexTrendline
8
USDCAD Analysis: Week 7/12/21 - 7/16/21OANDA:USDCAD This is a situation where I see a possible fake breakout. Price broke out of the long term blue trendline and is forming a head & shoulders . In my opinion the fundamental bias for this pair tilts to the downside. I think if we see price breaking back below the trendline there could be some violent moves down as possible buyer stop losses get triggered. This analysis is going against the current trend, so it's a little more dangerous. Risk management is key! News I'm watching out for. (all pairs) Comments about the timeline of interest rate hikes. Comments about quantitative easing (tapering or not). Keep an eye on the opec+ spat. Watch for tapering of production cuts. Watch for oil demand projections returning to pre-pandemic levels earlier than expected. Any news about vaccines being ineffective against new variants of the virus. News about lockdowns due to virus variants. GL Traders! "The elements of good trading are: (1) cutting losses, (2) cutting losses, and (3) cutting losses. If you can follow these three rules, you may have a chance." - Ed Seykota
Short
by natron
Binance Coin price broke important level! BNB/USD analysis.Binance Coin is located just above the very strong Support/Resistance level, which was created on the 11th of March. At the same time, we got over the formation of the triangle. At the moment, we have the opportunity for a Long trade. Simultaneously the price is above EMA 200 daily. On the other hand, we know that the formation of a triangle often has so-called "Fakeouts", which means that there will be a false breakthrough and the price will fall again. Now we need to find out, on lower time frames, what's going on inside the candles and decide whether there is a good opportunity to buy or sell. Today I will discuss all the essentials and based on our Price action strategy we will look for a suitable place to enter. Of course, all the conditions of our strategy must be met in order to increase the probability of a successful trade.
by UltimateCryptoTrader
Brakout or Fakeout ?Hello traders , As you can see in the related EURUSD idea I published sooner , I mentioned that IF we had a breakout of structure you can enter a long position ... But what happened then ? when you see a candle breaks the resistance area , that dose not mean that you can enter a long position . Actually it's the first sign of a long position of course. you should go through lower time frames to see a Weakness for sellers to enter a long position. in the next bear candle we can clearly see no Weakness which means this was a FAKEOUT ...
by sajadakrami1378
EUR-JPY Daily Support! Buy! Hello,Traders! EUR-JPY is now trading in a downtrend After it broke out of the rising channel However, the pair is now retesting a daily support level And as you can see the previous retest ended up with a fakeout And the daily candle closed above the level Todays daily candle closed above that level too And the new candle opened above the support Thus, I am expecting a local pullback from the level To retest the falling resistance Buy! Like, comment and subscribe to boost your trading! See other ideas below too!
Long
by TopTradingSignals
4
Bull Trap After Bear Trap!Composite Man loves tricking us. We were expecting a secondary test (ST) but it gave us a spring and wanted us to think this was the bottom. In fact what he gave us was a bear trap! How do we know this wasn't the spring we were looking for? By looking at the volume. The reason these shakeouts are made is to make sure supply is exhausted. When it happens we should have low volume. If you look at the volume of the shakeout on the 22nd, you'll notice it's the third highest bar in the trading range, almost on par with the second highest volume. If you also watched this bar closely while it was in the making, it was a red bearish candle almost all day. The moment it became clear that the supply is far from being exhausted, composite man started buying and his next trick begun: the bull trap. This time the Composite Man gave us a breakout of the downtrend, but wait does that really look like a breakout to you? I mean look at how slowly price has recovered 3/4 of it's loss in 3 days, which it lost in just one day and still trying! Look at the decreasing volume in contrast with so called "rally". This is a weak, fake breakout and a trap, this time for the bulls. As you can see it's getting dirty. Try zooming out when in doubt. Let's look at weekly chart for example: We have 3 more days to close this weeks candle. How do you think this week will close and more importantly what will the next week look like given the bearishness? Wyckoff isn't interested in volatile and sideways markets. He wants to trade with the trend, therefore, we will wait patiently until a clear trend arise with correct signals! Trade safe!
Short
by BitcoinMillio18
22
BTCUSDT Fakeout destroyer MethodHello traders! This method is called a fakeout destroyer method. Breakout is very easy to catch but it's very difficult to make money from breakout as most traders don't have data on how the Market reacts to breakout. I have the collection of data and with the help of that I can easily destroy fakeouts/breakouts. After the Breakout market faces very high buying or selling pressure and at that moment Market forms some specific patterns so its very easy to catch the trend if we react to those patterns. I try to predict every step for you so hit the like button for support and follow so that we can destroy together.
Short
by Aadil1000x
19
Beyond FoMo... Speculation.Beyond Meat is breaking out of a Bull Flag and is at the bullish 50 & 200 day ema crossover point. If the price can break through and stay above the strong 170 resistance area for a couple weeks this could confirm a bullish long term trend. Although there needs to be a considerable increase in volume to make this happen. Watch out for a "Fakeout" above resistance which could have high volatility like on Jan 26th A covered straddle option strategy is useful in a scenario like this when the price could move up or down quickly. The RSI is looking weak, the price could move down after getting rejected at a resistance point and remain in the pennant shape for many more months until it makes its major move out. Make sure to be aware of the overall market conditions while trading and avoid over leveraging in risky setups.
NASDAQ:BYND
by tylerwitucki
4
How to be careful from misleading Indicators | XRPUSD reversalAny feedback and suggestions would help in further improving the analysis! If you find the analysis useful, please like and share our ideas with the community. Keep supporting :) Quick glance: In our previous analysis on XRPUSD , we discussed about Ripple losing a massive market cap. Right now, XRPUSD had a massive reversal. It has taken support from the lower Bollinger bands. Market in the last 24hrs The last 24 hours were quite a roller coaster. All major cryptos witnessed a huge selloff including ETH, BTC, DOT and others. Trading volumes also spiked up tremendously. Today’s Trend analysis XRPUSD seems to be having a massive reversal. At the end of the downtrend on the 4H chart, there appeared to be a 'Hammer' formation. However, the patter could not be confirmed as the 2 following candles were red, thereby negating the reversal after the 'Hammer'. Stop losses would have been triggered for traders taking long positions after the hammer. Therefore, it is always crucial to wait for the confirmation candle, even if it eats into some of the potential gains. It hedges against fake-outs! The reversal happened after XRP took support from the lower band of the Bollinger Bands. The volume profile shows the demand zone at $0.8688, which is 40% higher than current levels. Price volatility remained extremely high at approximately 24.53%, with the day's range between $0.5231 — $.6514. Price at the time of publishing: $0.6315 XRP's market cap: $29.04 Billion Out of 11 Oscillator indicators, 9 are neutral,1 is bearish, and 1 is bullish. Out of 15 Moving average indicators, 11 are bearish , 3 are bullish and 1 is neutral . Indicator summary is bearish for XRPUSD in the shorter timeframe. Volumes have spiked up tremendously in the past 24 hours. ---------------------------------------------------------------------------------------- The analysis is based on signals from 26 technical indicators, out of which 15 are moving averages and the remaining 11 are oscillators. These indicator values are calculated using 4Hr candles. Note: Above analysis would hold true if we do not encounter a sudden jump in trade volume . ---------------------------------------------------------------------------------------- Any feedback and suggestions would help in further improving the analysis! If you find the analysis useful, please like and share our ideas with the community. Keep supporting :)
BITSTAMP:XRPUSDEducation
by Mudrex
2
⚡️ Understanding Breakout Traps ⚡️If we see a pattern form that retail likes to trade, It is highly likely that this pattern may get manipulated. The reason these common patterns get manipulated is because of liquidity forming. Banks want to make sure they can create enough liquidity for themselves to get positioned nicely in the market. They do this by driving the price up/down into stop loss areas. To avoid being caught out we need to sit on our hands, wait for the stop loss hunt to occur before we go-ahead with our initial position bias.
Education
by AlkalineFX
Price Action Study - Liquidity PoolsAs retail traders, we have the luxury of entering and exiting any position with ease - the size of our trades are not large enough to affect the market whatsoever. Now put yourself in the shoes of a bank, a multi-billion dollar fund - any type of institutional trader. You want to go long $2 billion dollars on a stock, a forex pair, a cryptocurrency - in doing so you face some issues. You're trading massive size. These types of orders are nearly impossible to hide - people reading the tape, watching level 2 or the DOM (Depth of market, footprint, etc) will see your order from a mile away and front-run you so they can get in on the coming volatility. Remember - for every buyer (you) there needs to be a seller. How can you ensure you can receive $2bil in shares at the price you're looking for? Who's providing that liquidity? Following up on point 1 - you can't just buy, buy, buy 100 lots at a time until you get the quantity you desire - price will have moved substantially by the time you're done. So what are you to do? Take advantage of liquidity pools! Here's the premise: Short selling provides long liquidity - they sell the stock anticipating price will go down. Longs provide short liquidity - they buy the stock anticipating price will go up. As an institutional trader, what do you need in order to go long? Many peoples selling short. What do you need in order to go short? Trapped buyers. So this brings us to the next question - How do institutions create sellers if they want to go long, how do they create buyers if they want to go short? Liquidity Pools Liquidity pools are areas where we can assume clusters of limit orders and/or stops reside. Pending limit orders are, by definition - liquidity! They are triggered as price trades through a particular area. From an institutional perspective - if price trades through X: Buy orders hit the market = potential short liquidity. Sell orders hit the market = potential long liquidity. This brings us to the next question: How do institutions identify liquidity pools? The answer: Where does the average retail trader place their stop? Below a swing low or a range low (think flags, channels, trends) Above a swing high or a range high (think flags, channels, trends) Above highs, retail traders wait to buy the breakout. They create short liquidity by buying from institutions who are selling short, with the intention of taking the price lower. Retail traders who short tops tend to place stops right above them - their buy stops create short liquidity as well if price is to wick through a high before going lower. Trading breakouts, breakdowns and ranges from this perspective gives much more context to "fake breakouts" as they were - the key takeaway is to avoid placing your stops in obvious areas - as these regions tend to get hunted for liquidity. -Will, OptionsSwing Analyst
Editors' picks
CME_MINI:NQ1!
by optionsswing
78
BTCUSD 4h. Symmetrical Triangle - Breakdown. Target 24KHi everyone, Thank you for considering reading my idea. This is a separate update from my previous idea. But now, we are breaking down the symmetrical triangle. The target of this pattern is at 24K. There is a possibility that this is maybe fakeout just like what we had 2 days ago. Though, if it's not, we may need hold support at 29-31K, our last support before breaking to our target at 24K. Like this idea and follow me for more analysis like this. Cheers, Juvs
BITSTAMP:BTCUSDShort
by Juvssss
1
Bitcoin - You might get trapped ! Not a financial advice - This is my trading diary ! It helps me think about my ideas. I have noticed lately that almost every trader is watching this pennant formation and waiting for an imminent breakout. Well, I must tell you to be a little careful with Fakeouts. - In other posts I have explained that there is still a low volume area left on Feb 08 that might push price easily towards the "bull trap zone" - Fibs .5 / .618 - (45 / 50K) - I've seen these moves being played out many times and this might be just another attempt to trap as many leveraged positions as possible before we head lower. - But there is bullish hope: If this trap doesn't work well and shorts get trapped instead, bulls can push price past .618 (51.5K region) and win the fight. - A break towards the downside can bring price to mid 20K level, a region with strong confluences between fibs, volume nodes, CME gaps, etc. - There bulls with big pockets can trap shorts and squeeze them back to mid 30K region. If they fail to do so, Bears win and we will see a sub 20K BTC again. What to do? - If you are not an experienced trader, try not to enter any breakout attempt because - I repeat - you might get trapped and rekt. Let the big boys play and jump only after one side clearly wins the battle. - If you are an investor, buy the dip -> but no financial advice.
BITSTAMP:BTCUSD
by FiboWhale
4
BTC Momentum Swing Breakout Fakeout at 1:1 Time FibExperimenting with geometric pattern overlays. Everyone appears to have been aware of the BTC 'triangle' forming over the past week+ However, there was a better triangle pattern forming, imo, from a larger major SR trend line angled from above. Attempted several Fib time relations from various points, highs, lows, low to low, high to high. This particular top trend line seemed to hit best. Will BTC fake out upwards, and tumble to a standard downward target of this overall triangle formation? Is this WK Distro or Accum? Notice the several channels that coincide within the major triangle formation. I've noticed many times, no charts move within an obvious single channel or formation for too long. Yet, seem to bounce from longer term trend channel to channel, with difficult patterns to discern. If nothing else, this chart in my estimation shows the power of multiple angled channels, while within a localized timeframe appears to follow similar geometric shape pattern overlays. Major breakdown near the vertical blue lines to continue the overall Wyckoff distribution, or beginning of accumulation?
BYBIT:BTCUSD.PShort
by DestinyJV