How to Trade Fakeouts
Trend lines
The SPEED of price movement is also
very important.
If price is inching like a
caterpillar towards the trend line, a false breakout may be likely. However, a
fast price movement towards the trend line could prove to be a successful
breakout. With a high price movement speed, momentum can carry price past the
trend line and beyond. In this situation, it is better to step back from fading
the breakout.
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