Fakeout in Forex
A clear definition of Fakeout, with practical context for reading markets and making better trading decisions.
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.
Related forex terms
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