Fakeout

Fakeout is a term used in technical analysis and refers to a situation where a certain level appears to be broken on the price chart, but then the price unexpectedly returns to its previous trend.

The term fakeout is a term generally used in financial markets and technical analysis. This term refers to the situation where a certain level appears to be broken on the price chart, but then the price unexpectedly returns to its previous trend. It is used frequently, especially in relation to breaking support or resistance levels. For example, if a price breaks a resistance level, investors may think that a new uptrend has begun, but if the price quickly bounces back and continues the old trend, this is called a fakeout.

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