Welcome to our Free Course
Enhance your trading knowledge by studying our legendary free online program!
  • Beginner
  • Intermediate
  • Advanced
  • Completion
  1. Beginner
    Early Stages for Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Personal Psychology Questions
    2 Topics
  5. Psychology for Beginners
    7 Topics
  6. Intermediate
    Identifying Scams
    2 Topics
  7. Brokers for Beginners
    5 Topics
  8. Technical Analysis
    13 Topics
  9. Market Structure
    5 Topics
  10. Completion
    Risk Management for Beginners
    8 Topics
  11. Fundamental Analysis
    9 Topics
  12. Advanced
    Using Indicators
    6 Topics
  13. Technical Analysis (Part 2)
    8 Topics

Fakeouts

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.

Fakeouts