30/04/2023
The ‘Fakey’ Entry (Inside Bar “false break pattern”)
The fakey pattern is the result of a false break of an inside bar setup. Instead of the market going with the initial break of the inside bar pattern, the market “fakes out” and reverses back past the other side of the inside bar. This often initiates a solid burst of momentum which can last one day or more. As we can see in the chart below, a false break of an inside bar pattern occurred and the next day price broke up above the inside bar high and shot higher for the next 6 consecutive days. Now, not all fakey’s will result in such a strong move, but when trading with the existing trend like this they are usually a very high probability price action trading setup.
Support level refers to the point where a downtrend is expected to pause temporarily due to increased supply while resistance levels refer to points where uptrends are expected to pause temporarily because of increased supply.