Fakey or false breakout of the Inside Bar pattern is one of the strongest trading setups because it leverages the crowd's failure to make profit
š¹ The structure consists of a mother Inside Bar followed by a candle breaking out of the mother bar but immediately reversing and closing inside the old range
šø This action is the classic liquidity sweep by whales to remove inexperienced Breakout traders before pushing price in the true direction
š¹ When encountering a Fakey enter a trade in the opposite direction of the false breakout and place stop loss at the tip of the liquidity sweep wick to go with the market maker
šø This pattern often appears at key top and bottom zones and offers very large R:R profit ratios if you catch it right
Have you ever hit Stoploss by a Fakey then watched price run in the right direction?
This article is for reference only, this is not investment advice. Please read and consider carefully before making a decision.
