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Shakeout

What are Fakeouts, Shakeouts and Whipsaws?Let's get straight into the three cronies of trading disaster when taking and holding a position. 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).
JSE:J200Education
by Timonrosso
BTC Wickoff 2022-2023 Shake out-Mark up?Hi dear community and my lovely followers. I would like to add another analysis which add more confluence to my previous analyses that BTC is preparing for another huge jump. As you see I Have drown BTC wickoff accumulation model 2022-2023 which shows that BTC hasn't only bottomed out but also has finished its main accumulation phase/A,B,C,D/ and now it is in a phase E /both profit-taking and acquisition of additional shares (“re-accumulation”) by Smart money/. In phase E can be small shakouts which we show at the moment, stay level headed, keep patience as BTC is preparing for Mark up to 35-37K. As I published in my previous analyses, I expect BTC to pump from 26K zone and think BTC has bottomed testing 200 weekly MA and 100 daily MA, but the worst case scenario could be test of previous support zone at 24.2-25K where Smart money will add their bags before new highs. I don't expect lower prices specially after taking out huge amount liquidity below 27K and 26.5k. BTW taking into account some bearish chart patterns/like H&S, rising wedge breakdown/ 99% expect 25K and even lower prices, as a contrarian trader I always go against the herd and expect bounce from this zone/although I have plan for both scenarios/. Don't forget to check my previous analyses/below this one/ where I shows you what are other factors which force me to expect higher prices. Don't be shake out, BTC will surprice everyone. I will also add more charts below this one, where you can find very interesting views. Don't forget to follow, like, comment, retweet. I will appreciate any kind of support. Have a good day , I wish you good trades.
BITSTAMP:BTCUSDLong
by ergal91
13
Ways to improve your chart reading Part 2 – Multiple timeframesThe bigger the timeframe is, the bigger the move it may produce. Therefore, it can be good practice to define the direction of the price and your trading based on where and how things develop on higher timeframes. Another reason to use timeframes with bigger resolutions for the confirmation of your decisions is that a trade setup on one particular timeframe is isolated from a bigger move and may appear while that move is at the end of its correction. For example, it might be that a higher timeframe shows a lot of supply (selling) in the background while lower timeframes show the presence of demand (buying). Usually, in these situations an up move will not continue for a long time and may eventually reverse, locking the trader into a bad position. The 1-hour chart in the picture shows the US dollar/Japanese Yen FOREX currency pair. (FXCM:USDJPY). Wide range bars appear at 15:00 on March 7th, at 15:00 on March 8th and at 02:00 on March 10th, UTC time. According to the VSA methodology, the volume on those bars and their closing prices indicate the presence of supply (weakness). At the same time, the price goes up for some time after each of these three bars. As a result, many traders who are using the 1, 3 and 5-minute charts, where the trend is up, open long intraday positions. With serious weakness in the background as seen in the picture above - when the smart money is selling - the price will usually not go up far and turns down very quickly producing a significant move. This gives the trader the chance to make a nice profit on small timeframes. An example of this kind of opportunity might be seen when an up bar on the 1-minute chart gets closed with low volume at 14:22 on March 10. As in our chart example where it has taken almost 3 days to provide a good setup to the short side, very often it may take time for the trade pre-conditions to develop on different timeframes. An ability to wait until a setup on a lower timeframe is aligned with the strength and weakness of the bigger moves is another good habit to develop. In many cases using a multi-timeframe environment, as well as being patient, helps a trader to avoid losses and improve their profit.
by Trade-to-Win_from_Tradeguider
XRP Accumulation for 100% returnI believe we are in a prolonged, multi-asset bear market. With that said we have not had a significant retracement for months. We are overdue both in time and price. A break of the recent lows will do the following: 1. Stop out any currently accumulating bullish positions with stop losses 2. Trigger entries for short sellers expecting a larger downside move (creating liquidity above for buyers) 3. Increase overall fear, making it difficult for retail to buy To me it looks like a perfect storm for price to catapult up to .60+ at which point I would highly recommend taking profits as the aforementioned bear market has not yet ended.
BITSTAMP:XRPUSDLong
by theroadtoprofit
3
BTC 33K SHAKEOUT BEFORE BULL-RUN 2.0I have mentioned in my earlier posts that we are in huge rising channel on the weekly timeframe. On the weekly we are looking bullish, however on the shorter timeframes i see some bearishness. On the daily BTC has printed a bearish engulfing candel which tells me that retest of the bottom of the channel is most likely to happen. But that makes me even more bullish because RSI is most likely going to make bullish divergence which will bring us bull run 2.0 What do you think about my opinion? If you like my ideas please follow me and like the post, i am new to Treadingview but i have 6 years expirience in trading. BTC TO THE MOON!
Long
by Mladen94
BTC Bullish Idea.Hey guys, here is what I am looking out for from BTC over the next 30 days. This idea is based off the Wyckoff accumulation pattern. It's a classic retail shakeout tactic where institutional investors fill or their cheap BTC orders while we sell low and buy back high. BTC dominance is starting to trend higher so Alts will likely get wrecked over the next 30 days. Time to accumulate BTC for the long term. Not financial advice, do your own research. Its a very high risk and volatile period. More updates soon.
by UnknownUnicorn15302902
7
Shades of the Shakeout of Oct 2019In October 2019, the charts looked very similar to what we're seeing now with BTC. Price had been falling for more than a month and the 200 EMA was providing heavy resistance. Everyone was talking about a looming Death Cross (where the 50 EMA crosses below the 200 EMA). We saw bullish divergence and seller exhaustion on the daily chart (similar to today) and were positioned for a strong bullish move. However, on Oct 22nd, there was a strong selloff and the price fell about 10%. This move triggered countless stoplosses and liquidated an enormous amount of leveraged longs. Chants of "Bitcoin is Dead" were all over social media. Then, just two days (or so) after the dramatic drop, BTC rocketed up 40%. The drop in price on the 22nd was a Liquidity Grab/Stoploss Hunt. Big players need liquidity in the markets in order to fill their desired position sizes. Many traders provide that liquidity by setting tight stoplosses at critical decision points. The traders that panicked or got stopped out on the 22nd, missed the 40% move on the 24th. I'm **NOT** saying history is about to repeat itself or that we're going to jump 40% from here... I'm just saying that now is exactly the wrong time to panic. I'm still expecting a strong bullish move that will catch many by surprise. ---------------------------------------------------------------- These are my personal views and not financial advice. Please do your own research before investing. I'd love to hear your thoughts, ideas and feedback. Feel free to Comment and I'll try and get back to you quickly. If you appreciated this analysis, consider Liking or Following . Thanks!
Long
by mercury_rising
3