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Breakouts vs Fakeouts: How to Tell the Difference


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This article on Breakouts vs Fakeouts is the opinion of Optimus Futures. Most traders have experienced that moment in their trading career where an exciting breakout situation horribly turned against, getting hit by a “fakeout” that was cleverly disguised as a breakout scenario. New and intermediate traders often struggle to differentiate between breakout and fakeout scenarios because often these setups can have similar building blocks in terms of price consolidating, or otherwise moving towards a breakout point. Except that on some occasions it appears to play out as per the textbook and other times, reverses and moves in the other…


Interesting article.



Good stuff! Very helpful.