A sharp movement above or below the support or resistance area. When validated it indicates a strong and fast move in the direction price broke through. Breakouts are great to spot when using the rectangle tool to box in price while it is consolidating.
Short for “False Breakout” it is the occurrence of price moving out of a support or resistance only to return. This move targets impatient traders to jump into positions.
A level where price bounces off of, also known as the ceiling. It works hand in hand with Support as it is the opposite but it does the same thing.
A level where price continues to bounce off of, also known as the floor. It works hand in hand with Resistance.
BeginnerEarly Stages for Beginners8 Topics
Forex Terminology11 Topics
- Major and Minor Currency Pairs
- Basic Forex Terminology
- Pips & Ticks
- The Broker & The Spread
- What is a Lot?
- Stop Loss & Take Profit
- Margin & Leverage
- Retracement & Reversal
- When Can I Trade Forex? Sessions - Market Open and Close
- 3 Types of Analysis (Technical, Fundamental, Sentiment)
- 3 Ways a Market Can Go (Up, Down, Sideways)
Margin & Leverage2 Topics
Personal Psychology Questions2 Topics
Psychology for Beginners7 Topics
IntermediateIdentifying Scams2 Topics
Brokers for Beginners5 Topics
Technical Analysis13 Topics
- Types of Charts
- Understanding Japanese Candlesticks
- Candlestick Patterns For Beginners
- Single, Double & Triple Candlestick Patterns
- Support and Resistance
- Confluences w/ Candlesticks & Support & Resistance
- Counter Trend Trading/ Counter Trend Lines
- Moving Average
- Top-Down Analysis
- Consolidation Trading (Breakout, Retest, Continuation)
Market Structure5 Topics
CompletionRisk Management for Beginners8 Topics
Fundamental Analysis9 Topics
AdvancedUsing Indicators6 Topics
Technical Analysis (Part 2)8 Topics
Is There a Guarantee the Market Will Go in My Direction?
As much as you want to believe that no matter how much knowledge you have on the market, price will always go in the way you predicted, that is simply not true. We’d all be millionaires if that was the case! Unfortunately, at times, the market decides to quickly humble us by creating fakeouts.
You’re probably wondering what a fakeout even is, but first you need to understand what a breakout is. A breakout is when price has broken out of a zone that it was recently consolidating in. A fakeout is quite the opposite; it is really just a fake breakout to pull in either buyers or sellers before the market goes in the opposite direction or continues to remain in the previous zone.
So to answer your question, no, there is no guarantee that the market will go in the direction you predicted. This is why you should always keep an open mind and wait for price to retest before entering any trade.