FOREX THEORY
False Breakouts
Now we know by now you are super excited to start trading
breakouts (please tell us you haven’t already started trading!) but you also
have to be careful. Just like Lionel Messi can fake out defenders, the market
can fake you out as well produce false breakouts.
False breakouts occur when the price breaks past a certain
level (support, resistance, triangle, trend line, etc.) but doesn’t continue to
accelerate in that direction. Instead, what you might’ve seen was a short spike
followed by the price moving back into its trading range.
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