Forex glossary

Fakeout in Forex

A clear definition of Fakeout, with practical context for reading markets and making better trading decisions.

Level 3 · Make Sense of ChartsForex basics

Definition

A move that appears to break a level but quickly returns inside the prior range. It punishes traders who enter without a clear invalidation plan.

Practical forex example

Price briefly trades above resistance, then closes back below it: that can be a fakeout.

Why Fakeout matters

Understanding Fakeout helps traders interpret market information, plan decisions, and manage risk with more context.

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