Breakout or fakeout?
Avoid the trap
Price breaks a level, you jump in, and it reverses. Here is how to avoid the fakeout.
Real breakout
A real breakout closes beyond the level with a strong candle, and often retests it.
Fakeout
A fakeout only pokes through with a wick, then closes back inside. That traps the late traders.
Rules
- Wait for a candle CLOSE beyond the level
- Best entry: the retest
- Wick only = possible trap
So wait for a close beyond the level, and look for the retest.
Learn it, then trade it with signals.
GOFX AI scans gold around the clock and sends setups with entry, stop loss and take profit to your phone - every win and loss published.
GOFX AI scans gold around the clock and sends setups with entry, stop loss and take profit to your phone - every win and loss published.
Trading involves risk. Lessons are for education, not financial advice.