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Definition of 'Fakeout'
A term used in technical analysis to refer 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.
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Investopedia explains 'Fakeout'
The possibility for fakeouts is the reason why traders should use more than one indicator to make decisions. To reduce the probability of being faked out, experienced traders will require four or more signals to confirm a decision.
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Search results for 'Fakeout'
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http://www.investopedia.com/articles/forex/05/PriceMemory.asp
... Here is how a fakeout double top setup might work: Once the price has exceeded the
prior swing high, do nothing until price shows a sign of weakness with a red ...
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http://www.investopedia.com/articles/forex/05/MACDdiverge.asp
... Figure 3 demonstrates a typical divergence fakeout, which has frustrated scores
of traders over the years. ... Figure 3: A typical divergence fakeout. ...
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http://www.investopedia.com/articles/forex/05/macddiverge.asp
... Figure 3 demonstrates a typical divergence fakeout, which has frustrated scores
of traders over the years. ... Figure 3: A typical divergence fakeout. ...
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http://www.investopedia.com/articles/forex/06/ConsolidationPatterns.asp
... The underlying theory is simply that if the price breaks back below the upper trendline,
the close above was simply a fakeout and the trend is being contained. ...
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