Technical Definition
Fakeout (False Breakout)
A fakeout is a false breakout where price briefly moves beyond a key level and then reverses.
By Crypto University Editorial
BreakoutStop Loss
✦ Key Insight
It traps traders and often leads to sharp reversals.
✕ Common Misconceptions
Entering without confirmation
Ignoring liquidity zones
Overtrading breakouts
Detailed Explanation
How It Works
Price breaks support/resistance
Traders enter
Price reverses quickly
FAQs
Q: How to avoid fakeouts?
Wait for confirmation or retest.
In Practice
“BTC breaks $65K → drops back below → traps buyers”