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    False Breakout (HowToTrade Cheat Sheet)

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    forexsingam
    The document provides a guide to false breakout trading strategies. It describes bearish and bullish fakeout patterns that can occur when an initial breakout signal, like a bullish or bearish engulfing pattern, is contradicted by a bearish or bullish pin bar forming near a support or resistance level. This indicates the initial breakout was false. The guide explains how to spot these patterns and enter trades, with examples using pivot point support and resistance levels on 1 hour charts and placing stop losses at 50% of the pin bar size.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    False Breakout (HowToTrade Cheat Sheet)

    Uploaded by

    forexsingam
    73 views3 pages
    The document provides a guide to false breakout trading strategies. It describes bearish and bullish fakeout patterns that can occur when an initial breakout signal, like a bullish or bearish engulfing pattern, is contradicted by a bearish or bullish pin bar forming near a support or resistance level. This indicates the initial breakout was false. The guide explains how to spot these patterns and enter trades, with examples using pivot point support and resistance levels on 1 hour charts and placing stop losses at 50% of the pin bar size.

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    False-Breakout-(HowToTrade-cheat-sheet)

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    The document provides a guide to false breakout trading strategies. It describes bearish and bullish fakeout patterns that can occur when an initial breakout signal, like a bullish or bearish engulfing pattern, is contradicted by a bearish or bullish pin bar forming near a support or resistance level. This indicates the initial breakout was false. The guide explains how to spot these patterns and enter trades, with examples using pivot point support and resistance levels on 1 hour charts and placing stop losses at 50% of the pin bar size.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    73 views3 pages

    False Breakout (HowToTrade Cheat Sheet)

    Uploaded by

    forexsingam
    The document provides a guide to false breakout trading strategies. It describes bearish and bullish fakeout patterns that can occur when an initial breakout signal, like a bullish or bearish engulfing pattern, is contradicted by a bearish or bullish pin bar forming near a support or resistance level. This indicates the initial breakout was false. The guide explains how to spot these patterns and enter trades, with examples using pivot point support and resistance levels on 1 hour charts and placing stop losses at 50% of the pin bar size.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 3

    FALSE BREAKOUT

    S T R A T E G Y G U I D E

    • Can be used in any market condition where traders are looking to trade the breakout.

    • Can be used in ascending, descending, and ranging markets.

    • Can be used with various key levels of support and resistance.

    • It is determined by three candlesticks

    FALSE BREAKOUT PATTERNS


    BEARISH FAKEOUT
    • The bullish engulfing pattern could indicate a
    good opportunity to get into a trend.

    • When the bullish engulfing pattern is followed


    by a bearish pin bar at resistance, it could
    indicate a fakeout.

    • The sellers have taken back control.

    • The signal is strongest when the bearish pin bar


    closes back inside the first candle’s body.

    BULLISH FAKEOUT
    • The bearish engulfing pattern could indicate a
    good opportunity to get into a trend.

    • When the bullish engulfing pattern is followed


    by a bearish pin bar at resistance, it could
    indicate a fakeout.

    • The buyers have taken back control.

    • The signal is strongest when the bullish pin bar


    closes back inside the first candle’s body.

    Get your free access today and join our trading room
    The information provided within this PDF is for educational purposes only.
    BEARISH FAKEOUT STRATEGY

    • In this example, we’re using the daily pivot point indicator to give us resistance levels,
    and enter trades on the 1 hour chart.

    • The market is in an uptrend up to R1.

    • A bullish engulfing pattern appears, a good opportunity to go long if the trend


    continues.

    • However, a bearish pin bar closes below R1, which could indicate that the breakout
    signal was false.

    • The optimal trade in this example is a short entry at the bottom of the bearish pin.

    • In this example, the stop loss is placed at 50% of the bearish pin bar to limit risk bar.

    • A good time to take-profit is the next level of support (the pivot line in this example).

    • Don’t risk more than you are willing to take as profit.

    Get your free access today and join our trading room
    The information provided within this PDF is for educational purposes only.
    BULLISH FAKEOUT STRATEGY

    • In this example, we’re using the daily pivot point indicator to give us support levels,
    and enter trades on the 1 hour chart.

    • The market is in a downtrend down to S1.

    • A bearish engulfing pattern appears, a good opportunity to go short if the trend


    continues.

    • However, a bullish pin bar closes above S1, which could indicate that the breakout
    signal was false.

    • The optimal trade in this example is a long entry at the top of the bullish pin bar.

    • In this example, the stop loss is placed at 50% of the bullish pin bar to limit risk.

    • A good time to take-profit is the next level of resistance (the pivot line in this
    example).

    • Don’t risk more than you are willing to take as profit.

    Get your free access today and join our trading room
    The information provided within this PDF is for educational purposes only.

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