Fakeout

Fakeout refers to a situation in which a trader enters into a position in anticipation of a future transaction signal or price movement, but the signal or movement never develops

Fakeout

Fakeout is a term used in technical analysis to indicate that investors/traders have been deceived by recent stock chart action.

 


Fakeout Identification

Fakeout refers to a situation in which a trader enters into a position in anticipation of a future transaction signal or price movement, but the signal or movement never develops and the asset moves in the opposite direction.

Fakeout Interpretation

Traders should use more than one indicator to minimize the possibility of being faked out. 



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