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Fakeouts

What is the difference between a pro-trader and a beginner? The difference between pro traders and new traders is how they approach trading. Pros commit to trading. They do not see it as an opportunity, they see trading as a form of work. They are not looking for the best trade every time, instead, pros are looking for many trades because they see loss and gain as a fundamental part of how trading works. It would not be too absurd to think of pros as survivors. Pros have realized losses and gains over time, injecting capital only to lose some more, yet they have accepted that that is the nature of trading. There are both good and bad trades that range in how profitable or unprofitable they may be. Pros respect the markets, they are not trying to prove that they are right -they just follow the flow of the market. Lastly, pros understand that a lot of things cost money in the day trading world; however, they are willing to spend it because they like to have the tools that will lead them to success. New traders differ from pros in plenty of ways. For starters, they are looking for that original piece of validation to continue their day trading ventures. This is why new traders tend to look for only the best trades in the markets they are monitoring. They instinctively want to make money right away and gain some working capital to buffer any future loss. Furthermore, new traders suffer a lot when they fail because they take it personally and naturally reject their losses. This behavior eventually leads to them quitting altogether which ties into their commitment to trading as a whole. New traders (unlike pro traders) do not like to commit; for them trading is an opportunity to get as much money as possible from their trades. Furthermore, they are looking to minimize their costs by acquiring tips, shortcuts and various other content for free. As a result, new traders often sprinting to make a quick buck while if they simply took the time to slow down and educate themselves they will make more successful trades in the long run. Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
9
Learn False Breakout in Trading | Technical Analysis Basics ⭕️False-breakouts are exactly what they sound like: a breakout that failed to continue beyond a level, resulting in a ‘false’ breakout of that level. False breakout patterns are one of the most important price action trading patterns to learn, because a false-break is often a very strong clue that price might be changing direction or that a trend might be resuming soon. ⭕️A false-break of a level can be thought of as a ‘deception’ by the market, because it looks like price will breakout but then it quickly reverses, deceiving all those who took the ‘bait’ of the breakout. It’s often the case that amateurs will enter what looks like an ‘obvious’ breakout and then the professional’s will push the market back the other way ⭕️A false breakout is essentially a ‘contrarian’ move in the market that ‘flushes’ out those traders who may have entered on emotion, rather than logic and forward thinking. ⭕️Generally speaking, a false-breakout happens because amateur traders or those with ‘weak hands’ in the market will tend to enter the market only when it ‘feels safe’ to do so. This means, they tend to enter when a market is already quite extended in one direction (and it’s about ready to retrace) or they try to ‘predict’ a breakout from a key support or resistance level too early. Professional traders watch for these missteps by the amateurs, and the end result is a very good entry for them with a tight stop loss and huge risk reward potential. ⭕️It takes discipline and a bit of ‘gut feel’ to know when a false-break is likely to occur, and you can never really know ‘for sure’ until after one has formed. The important thing, is to know what they look like and how to trade them. Like, comment and subscribe to boost your trading! Hey traders, let me know what subject do you want to dive in in the next post?
OANDA:XAUUSDEducation
by TopTradingSignals
10
⭕️WHAT IS A FALSE BREAKOUT❓ ⭕️False-breakouts are exactly what they sound like: a breakout that failed to continue beyond a level, resulting in a ‘false’ breakout of that level. False breakout patterns are one of the most important price action trading patterns to learn, because a false-break is often a very strong clue that price might be changing direction or that a trend might be resuming soon. ⭕️A false-break of a level can be thought of as a ‘deception’ by the market, because it looks like price will breakout but then it quickly reverses, deceiving all those who took the ‘bait’ of the breakout. It’s often the case that amateurs will enter what looks like an ‘obvious’ breakout and then the professional’s will push the market back the other way ⭕️A false breakout is essentially a ‘contrarian’ move in the market that ‘flushes’ out those traders who may have entered on emotion, rather than logic and forward thinking. ⭕️Generally speaking, a false-breakout happens because amateur traders or those with ‘weak hands’ in the market will tend to enter the market only when it ‘feels safe’ to do so. This means, they tend to enter when a market is already quite extended in one direction (and it’s about ready to retrace) or they try to ‘predict’ a breakout from a key support or resistance level too early. Professional traders watch for these missteps by the amateurs, and the end result is a very good entry for them with a tight stop loss and huge risk reward potential. ⭕️It takes discipline and a bit of ‘gut feel’ to know when a false-break is likely to occur, and you can never really know ‘for sure’ until after one has formed. The important thing, is to know what they look like and how to trade them. 🛑Which we will discuss in the next article, If you like this one❗️ Dear followers, let me know, what topic interests you for new educational posts?
OANDA:BTCUSDEducation
by SignalProvider
8
How to differentiate a fake-out from an actual break-outHappy Friday, sorcerers. Welcome on another educational post by Investroy! The trading and investing industry is a difficult one to succeed in as it has various complex details that you need to dig into both from technical and psychological perspectives. Predicting the price movement and understanding the logic behind it may be challenging at first. But as time passes and you gain experience, you understand the science behind price action and make more logical decisions. Today, we will talk about a rather puzzling issue faced by many beginning and experienced traders: the theme of differentiating fake price movements from real ones. Although, it is not always possible to separate the two to the full extent, it is feasible to build a plan around it and stick to it on a consistent basis. A fake-out is a failed attempt of the price to break above/below a key zone. Very often, it is associated with liquidity grabs and Stop Loss hunts. To demonstrate, looking at the illustration pictured on the chart, you can see how the price attempts to continue its bullish moves, but fakes out from the sideways-moving range and re-enters the borders of it instead. On the contrary, a breakout happens when price successfully penetrates a key level and continues its impulsive moves in the same direction Now, the question is: how to distinguish a real breakout from a fake one? Firstly, it has to be kept in mind that what goes up, must come down. In trading terms, after an impulsive move, a correctional one should come; after a breakout, a re-test should happen before continuing impulses. In order to identify whether a breakout is a fake or a real one, we should always look for a re-test of the penetrated zone after a break is completed. However, you have to keep in mind that it is not a 100% fact that a re-test will happen every time. Sometimes, breakouts will be so impulsive that price will not retrace back to re-test a penetrated zone. Nothing is 100% accurate in trading. Not every breakout will lead to a re-test before impulsive continuations. Not every fake breakout will seem like a fake-out at first. However, waiting for a re-test of a broken zone is a good way to evade fake breakouts and capture high risk-to-reward trades and opportunities. To conclude, if you want to make sure you don’t get faked out and liquidated, always wait for a re-test of a penetrated level before forming biases and executing positions.
BITSTAMP:BTCUSDEducation
by Investroy
9
EUR / USD 1.13638 - 0.4 % SHORT IDEA * STRUCTURE & PRICE ACTION HEY EVERYONE HOPE EVERYONE IS DOING GOOD HAVING A GOOD ONE, A LOOK AT THE EURO / DOLLAR PAIR. * The pair has been range bound in consolidation for a while now, trading in a descending channel within this structure. - The pair saw a break above of structure currently rejecting this move, which brings the possibility of the descending structure being in play again. - Looking for short entries on the PAIR short term this week should all the rules of the formation be met. lets see how it goes IF THIS IDEA ASSISTS IN ANY OR IF YOU LIKE THIS ONE SMASH THAT LIKE BUTTON & LEAVE A COMMENT. ALWAYS APPRECIATED ____________________________________________________________________________________________________________________ * Kindly follow your entry rules on entries & stops. |* Some of The idea's may be predictive yet are not financial advice or signals. | *Trading plans can change at anytime reactive to the market. | * Many stars must align with the plan before executing the trade, kindly follow your rules & RISK MANAGEMENT. _____________________________________________________________________________________________________________________ | * ENTRY & SL -KINDLY FOLLOW YOUR RULES | * RISK-MANAGEMENT | *PERIOD - SWING TRADE
Short
by PULEMokhothu
Gold: Rain of FakeoutsHello traders! As I always told you buying on bullish breakouts never works. The winning probability of buying on bullish breakouts is 1 out of 6 but if you sell on bullish breakouts then the winning probability is 5 out of 6 times. The numbers are the failed breakouts counting. The Gold has already failed 5 times and this time we might see a mega pump in Gold price. This breakout can push the Gold price to break an all-time High. Again when we see a breakout of the resistance at 2076 then we will see some natural retracement. Don't forget to hit the like button and follow to stay connected I hope you will not follow those who just draw a trendline and shows an arrow towards the upside because it's not the correct way and these posts hurt my brain LOL.
OANDA:XAUUSDLong
by Aadil1000x
1
CHF/JPY SELL SIGNAL Hey tradomaniacs, welcome to a new free trading-setup. Notice: ALL TRADES today especially major-pairs are very risky ahead the ADP-Figures! CHF/JPY: Daytrade-Execution Market-Sell-Order: 116,740 Stop-Loss: 116,900 Target 1: 116,600 Target 2: 116,470 Target 3: 116,340 Stop-Loss: 16 pips Risk: 0,5% - 1% Risk-Reward: 2,48 LEAVE A LIKE AND A COMMENT - I appreciate every support! =) Peace and good trades Irasor Wanna see more? Don`t forget to follow me. Any questions? PM me. :-)
Short
by Trading2ez
2
Bitcoin Faked The Fakeout? In my last analysis, I was a bit devided by the price action of Bitcoin. Bitcoin broke in and out of its triangle whether it was bullish or bearish. We spotted 2 false breakouts on the downside and one on the upside. When the price was at the support line of the triangle, I said that Bitcoin had a 55% probability to rise to resistance and possibly break it. Right now, Bitcoin is at resistance again which gives me more confidence Bitcoin will rise to our target of 13k. Because the price is still in the triangle we can't get ahead of ourselves yet. So i raise my probability to 60% for the price to break bullish. Now, this still is not enough confidence to take the trade. At least you want to be 70% sure that the trade will be successful. For that to happen, Bitcoin needs to get above the red resistance zone again. But for now i am more confident than i was yesterday. However i still am not as confident as i was 2 days ago. To summarize: I still think it is more probable the price will reach our target of 13k. However I need to be sure for at least 70% before i make that claim again.
COINBASE:BTCUSD
by VinanceYT