๐Ÿ“ˆTradeSmrt
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Question 8 / 8

Price pokes slightly above resistance on low volume, then immediately falls back inside the range. What is this called, and how should you respond?

When price briefly pokes above resistance without a volume surge and then snaps back inside the range, it's called a 'fakeout.' Traders who chase the breakout late often get stopped out right as price reverses, which can accelerate the drop. Genuine breakouts tend to come with noticeably higher-than-average volume, so confirming volume and requiring a close above resistance โ€” or waiting for a retest that holds as support before entering โ€” are common ways to reduce fakeout risk.