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Fakeout

Uni Fake Breakout of trend line ! Be aware ! UNI has been trading in a clear uptrend on the 4h timeframe. The price has been respecting the ascending trendline and making higher lows. However, the price is now approaching a strong resistance level at $13. The ascending trendline: The ascending trendline is a bullish pattern that is characterized by two converging trendlines, one connecting lower highs and the other connecting higher lows. The price typically breaks out above the upper trendline, signaling a continuation of the uptrend. The resistance level: The resistance level is a price level at which the price is likely to stop rising and start falling. This is because there are a large number of sell orders at this level. The fakeout: The fakeout is a bearish pattern that is characterized by a sharp increase in price, followed by a quick reversal and fall. This pattern is often used by large market participants to trap retail traders and acquire liquidity at higher prices. The bullish scenario: The price breaks out above the resistance level at $13 and continues to rise. The first bullish target is $20. The bearish scenario: The price fails to break out above the resistance level at $13 and falls back to the trendline. The price then retests the trendline and breaks down below it, signaling a reversal of the uptrend. Conclusion: The UNI chart shows a bullish pattern. The price is approaching a strong resistance level. The outcome of this level will determine the future direction of the price. Investors should always do their own research before investing in any cryptocurrency.
Long
by Yaroslav_Krasko
5
Triangle Pattern Trading: A Trap for NewbiesThe triangle pattern is a popular chart pattern that is often used by technical analysts to identify potential breakout opportunities. However, traders should be aware that the triangle pattern can also be a trap for unsuspecting beginners. Why the Triangle Pattern is a Trap One of the reasons why the triangle pattern can be a trap is that it is a very subjective pattern. There are no hard and fast rules for identifying a triangle pattern, and what one trader might identify as a triangle pattern, another trader might not. Another reason why the triangle pattern can be a trap is that it is a very common pattern. This means that there are many opportunities for traders to trade this pattern, which can lead to overtrading. Overtrading is a common problem for beginners, and it can lead to significant losses. Smart Money Traders and the Triangle Pattern Smart money traders are aware of the fact that the triangle pattern can be a trap for beginners. They will often use this pattern to their advantage by creating false breakouts and trapping beginner traders into losing positions. Here are four examples of how smart money traders use the triangle pattern to trap beginners: NEO: formed a bullish triangle pattern. However, the price broke out of the pattern in a fake breakout and then reversed sharply, trapping many beginner traders who were buying the breakout. RVN: Rformed a symmetrical triangle pattern. The price broke out of the pattern in a fake breakout and then reversed sharply, trapping many beginner traders who were buying the breakout. DYDX: formed a descending triangle pattern. The price broke out of the pattern in a fake breakout and then reversed sharply, trapping many beginner traders who were buying the breakout. TRX: formed a bullish triangle pattern. However, the price broke out of the pattern in a fake breakout and then reversed sharply, trapping many beginner traders who were buying the breakout. How to Avoid the Triangle Pattern Trap There are a few things that traders can do to avoid the triangle pattern trap: Be aware of the subjectivity of the pattern. There are no hard and fast rules for identifying a triangle pattern, so traders should be careful not to get too caught up in trying to identify this pattern. Don't overtrade. The triangle pattern is a very common pattern, which means that there are many opportunities to trade this pattern. Traders should be careful not to overtrade this pattern, as this can lead to significant losses. Be aware of smart money traders. Smart money traders will often use the triangle pattern to their advantage by creating false breakouts and trapping beginner traders into losing positions. Traders should be aware of this and be careful not to fall for these traps. Conclusion The triangle pattern can be a useful tool for identifying potential breakout opportunities. However, traders should be aware that this pattern can also be a trap. By understanding the reasons why the triangle pattern can be a trap, and by taking steps to avoid these traps, traders can protect themselves from significant losses.
Education
by Yaroslav_Krasko
4
Double Top w/ Caution!! - EJHere I have EUR/JPY on the 1 Hr Chart! The HOT news on French PMI Thursday Morning followed by the Not-So Hot German and Manufacturing/Services PMI readings began the formations of a strong reversal pattern called a Double Top! The mixed PMI results for USD seemed to ease Euros' decent BUT With 2.8% CPI and talks from the ECB of "possible Rate Cuts in March", this could make Euro start to look less favorable in the bucket of currencies! Given that CONFIRMATION of Pattern is @ 162.649, I like to keep in mind the flipside of the coin and there are decent levels of Support in the ( 162.45 - 162.33 ) and ( 162.03 - 161.9 ) ranges! *These could serve as opportune Fake-Out areas to turn this pattern into a Ranged pattern called a BULL FLAG! -CONFIRMATION of PATTERN @ 162.649 -INVALIDATION of PATTERN @ 163.208
Short
by Novi_Fibonacci
WHAT ARE Fakeouts, Shakeouts and Whipsaws?YOUR QUESTION ANSWERED! What on earth are Fake outs, Shake outs and Whipsaws? After this you will know… Fake-out: (When the price makes a false breakout of a chart pattern) A fake-out occurs when the price of a market appears to break out of a certain chart pattern. This could be a trendline, support, or resistance level. But then quickly reverses and retreats back within the pattern. Shake-out: (Where the market is highly volatile and the price moves to levels that hits their stop losses and gets traders out of their trades) A shake-out is a scenario where the market becomes highly volatile and the price moves rapidly to levels that trigger the stop-loss orders of many traders. Stop-loss orders are pre-set risk levels at which traders automatically exit their positions to limit their losses. A shake-out is designed to “shake out” weak or inexperienced traders from the market. When stop-loss orders are triggered, it can create a temporary spike in the opposite direction of the prevailing trend. Once these traders are “shaken out,” the market might resume its original trend. You’ll see this most commonly with low liquid, high volatile markets like Penny Stocks or Penny Cryptos. Whipsaw: (This is where the market will change its most prominent direction within the day). Whipsaw refers to a situation where the market quickly changes its direction within a relatively short period, often during a single trading day. This can cause confusion and losses for traders who are caught off-guard. Whipsaws can occur due to various factors, such as sudden news releases, economic data surprises, or changes in sentiment. They are characterized by sharp price movements that can make it difficult to make accurate trading decisions. Whipsaws are especially common during periods of high market uncertainty or when there’s a lack of a clear trend. Let’s create a quick summary of the three: Fake-out: (When the price makes a false breakout of a chart pattern) Shake-out: (where the market is highly volatile and the price moves to levels that hits their stop losses and gets traders out of their trades) Whipsaw: (This is where the market will change its most prominent direction within the day). If you have any trading question let me know in the comments
TVC:SA40Education
by Timonrosso
BLUR - Fakeout below descending channelAllow me to share the exhilarating journey of BLUR, the budding cryptocurrency on Binance. Despite its nascent presence, BLUR has orchestrated a bullish symphony that echoes the proper way to ascend, shooting straight for the moon! 🌕 Navigating the Abyss: A Strategic Shakeout Descending Channel Tactics: BLUR engaged in tactical trading within a descending channel, setting the stage for a powerful move. A deliberate shakeout beneath the lower boundary provided the coin with ample fuel and strength for the ascent. Launching into Space: True Breakout Manifested The strategic shakeout was followed by a genuine breakout, soaring above the upper boundary of the descending channel. This breakout signifies a robust and bullish movement, suggesting potential gains. Experiencing True Bullish Momentum Early Glimpse of Bullish Prowess: BLUR, in its early days on Binance, has already demonstrated a commendable ability to showcase bullish momentum. The breakout from the descending channel serves as a testament to the coin's strength. Immediate Growth Trajectory: The trajectory indicates an immediate growth potential, positioning BLUR as a cryptocurrency to watch in the market. Strategic Insights: BLUR's journey is a compelling example of how strategic maneuvers within a descending channel can set the stage for true bullish movements. As the coin breaks free and charts its course towards the moon, traders and investors should keep a keen eye on potential entry points to ride the anticipated bullish wave. Embark on the voyage wisely, 🚀 ❗️Unlock exclusive insights! Claim your 3 crypto trading indicators for FREE! Link below 🔑
by AlexWhale
Storj Sweeping Sell Side Liquidity🌐 In the ever-shifting landscape of the cryptocurrency market, Storj (STORJ) has taken center stage with a compelling narrative. It's been on a mission to clear global sell side liquidity and seems poised for an upward trajectory. STORJ's strategy has often involved liquidity sweeps, signaling a shift in direction, and it may be gearing up for another significant move. Let's explore this intriguing development. 📈🌐 Sweeping Global Sell Side Liquidity: Storj's recent actions are akin to a skilled chess player making strategic moves on the board. The project has been actively sweeping global sell side liquidity, effectively clearing out sell orders clustered around specific price levels. This maneuver can set the stage for a substantial upward movement. A History of Shifting Paths: Storj's track record shows that each time it engages in liquidity sweeps, it subsequently embarks on a new price direction. This ability to adapt and switch paths is a hallmark of its dynamic nature. The Path Upward: As Storj continues to clear out global sell side liquidity, the path upward seems to be on the horizon. It's as though the project is gearing up for its next significant move in the crypto chess game. Trading Strategy: Observation: Keep a keen eye on Storj's price action and how it interacts with liquidity sweeps. Risk Management: As always, implement prudent risk management practices to safeguard your investments in the crypto market. Stay Informed: Stay up-to-date with Storj's fundamentals and any news that could impact its price movement. Conclusion: The cryptocurrency market is full of intricate strategies and maneuvers, and Storj's actions are a testament to its adaptability and dynamic nature. While liquidity sweeps can provide insights into potential market movements, they are not infallible. As you follow Storj's journey, be vigilant, stay informed, and be prepared for the twists and turns that this captivating project might offer. ❗️Get my 3 crypto trading indicators for FREE! Link below🔑
by AlexWhale
NEAR and FET: Similar Fakeout PatternsThe cryptocurrency world often surprises us with intriguing market dynamics, and today, we'll delve into NEAR and FET, two projects that have crafted similar fakeout patterns but may be charting different paths forward. NEAR executed a "sweep of the lows," while FET is forging a "double bottom" pattern, both aiming for a potential ascent to $0.55. Let's explore the nuances of these setups. 📈🔍 NEAR's "Sweep of the Lows": NEAR Protocol (NEAR) recently performed a "sweep of the lows," a strategic move designed to clear out sell orders at lower price levels. This maneuver creates a potential foundation for an upward movement. FET's "Double Bottom": Fetch.ai (FET), on the other hand, appears to be forming a "double bottom" pattern, characterized by two distinct price lows. This pattern often signifies a shift from a downtrend to an uptrend and can lead to notable price gains. The $0.55 Target for Fetch Trading Strategy: Observation: Keep a watchful eye on the price action of NEAR and FET, and how they interact with their respective patterns. Risk Management: Prudent risk management is essential, particularly when dealing with the inherent volatility of the crypto market. Stay Informed: Stay up-to-date with the latest developments and news related to NEAR and FET that could impact their price trajectories. Conclusion: In the crypto market, similar patterns can lead to varying outcomes. While both NEAR and FET are eyeing the $0.55 level, the paths they take may diverge. As traders and investors, it's crucial to remain adaptable, stay informed, and exercise caution as you navigate these distinct journeys. Remember that the crypto market can be as unpredictable as it is exciting. May your trades be prosperous, no matter which path you choose to follow. ❗️Get my 3 crypto trading indicators for FREE❗️ Link below🔑
by AlexWhale
DUSK MANIPULATION TRIANGLE PATTERN 🏴DUSK Network (DUSK) has something remarkable unfolding on its weekly chart. It has artfully painted a substantial bullish pennant pattern, complete with a fakeout move to the downside. Now, it's poised for a genuine upward surge. The key to entering this market? Patience and a confirmation through a flag retest. 📊🏴 The Bullish Pennant Emerges: DUSK has illustrated a spectacular bullish pennant pattern on its weekly chart. This pattern consists of a strong upward move (the flagpole) followed by a consolidation phase marked by lower highs and higher lows (the flag). It's a classic indicator of impending bullish momentum. 📈🚩 The Fakeout Element: What makes this scenario even more intriguing is the fakeout move to the downside. It's a tactical maneuver to shake off traders prematurely entering short positions. But for the astute trader, this can be seen as an opportunity. 🃏 Entering the Market: For those eyeing a position in DUSK: Wait for the Flag Retest: The prime entry point is after DUSK retests the lower border of the flag. This can act as a confirmation of the bullish intent. Risk Management: Implement solid risk management strategies, including stop-loss orders, to protect your investment. Stay Informed: Keep an eye on DUSK's fundamentals and any news that could impact its price action. Conclusion: The cryptocurrency market is a realm of intricacies, where patterns like the bullish pennant can offer insights into potential price movements. However, it's important to approach it with both caution and knowledge. The fakeout move might have left some traders bewildered, but it also creates opportunities. The key is to be patient, wait for confirmations, and be prepared for the genuine upward movement. As always, adapt your strategy to the ever-evolving market conditions, stay informed, and trade wisely. ❗️Get my 3 crypto trading indicators for FREE! Link below🔑
by AlexWhale
The Art of False Breakouts + RSI: COMPOUND! 📉🚀Trading is an intricate game of psychology, and understanding false breakouts can be the key to success. Let's delve into COMP, where false breakouts played a pivotal role in recent price action. 📉🚀 Closer look to Fakeout : Deconstructing False Breakouts False breakouts are like crafty illusions, luring traders into making premature decisions. COMP, a cryptocurrency known for its volatility, recently demonstrated how these maneuvers can shake the market. From False Bottom to False Top COMP first tricked traders with a false breakdown from the lower range, inducing panic. But as if by sleight of hand, it quickly shifted gears, delivering a false breakout from the upper range, catching many off guard. Trading Wisdom: The Lesson Here The case of COMP underscores the need for cautious trading, especially in volatile markets. Recognizing false breakouts can help you avoid unnecessary losses. Strategies involving stop-loss orders and thorough research can be your shield against these tricky moves. Conclusion: Mind the Illusions COMP's recent shenanigans emphasize the significance of identifying false breakouts. This knowledge can give traders a substantial advantage and help them navigate the turbulent waters of crypto trading. 📊 Trading Strategies | 🧠 Psychology | 📈 Price Action | 💡 Insights | 🌐 Cryptocurrency ❗See related ideas below❗ Share your thoughts in the comments! 💚📉💚
Education
by Yaroslav_Krasko
SOL : Liquidity Game 📈💡Solana (SOL) has been a hot topic lately, and for a good reason. It's been on a relentless upward trajectory following liquidity sweeps of key lows. What's more, I'm anticipating another liquidity sweep around the $17 level, which could ignite another round of growth. It's a reminder that liquidity is the fuel that powers price movements. 📈💡 Liquidity Sweeps Fuel Price Movements: Liquidity sweeps occur when market participants push the price briefly to clear out buy or sell orders clustered around a particular level. This process can often be a precursor to a price surge. Liquidity acts as the fuel that propels price action, and the crypto market is no exception. 🚀💰 Anticipating the Next Move: In the case of SOL, the anticipation of a liquidity sweep around $17 could be a pivotal moment. It might create the conditions for a further price increase as orders are cleared out. However, the crypto market is dynamic and unpredictable, so it's crucial to stay vigilant and adapt your strategy accordingly. 📊🔍 Trading Strategy: Patience and Caution: If you're considering a position, waiting for the liquidity sweep to occur and looking for confirmation in price action could be a prudent approach. Risk Management: Use risk management tools such as stop-loss orders to protect your investments. Fundamental Awareness: Stay informed about Solana's fundamentals and any news that could influence its price. Conclusion: The cryptocurrency market is a unique arena where liquidity plays a crucial role in shaping price movements. While liquidity sweeps are often seen as potential catalysts for growth, they are not foolproof guarantees. As a crypto trader or investor, it's essential to exercise caution, stay informed, and adapt to the ever-changing market conditions. Liquidity can be the fuel, but it's your strategy that steers the ship. ❗️Get my 3 crypto trading indicators for FREE❗️ Link below🔑
by AlexWhale
3
BTCUSD confirming a fakeoutIn this brief and simple analysis, I'd like to focus your attention on the interplay between the 55EMA (green line) and the 200EMA (purple line), on the 1D timeframe of the index chart for BTCUSD. In technical analysis, when a faster moving average crosses above a slower moving average, you obtain a bullish cross, when the faster one crosses below the slower one, you have a bearish cross on your hands. Sometimes, when a cross is about to present itself, you'll witness a fakeout instead: a move on the opposite side of the trend that nullifies such potential cross between the moving averages. Usually, when something like that happens, price action tends to continue towards that direction sooner rather than later. While this is not a must, it's a general rule of thumb. In this specific case, we can observe what I would call a majestic example of a fakeout on the 1D timeframe, meaning that as long as all closes remain above the slower moving average - the 200EMA in this case - there's no reason to be bearish on BTCUSD. At the time of writing, the 200EMA is sitting around 27000.
INDEX:BTCUSDLong
by Andewyl
1