What Is Fakeout?
A false breakout in which price pierces a key level, triggers stops and breakout entries, then reverses sharply. Crypto's leverage heavy markets make fakeouts common, which is why many traders wait for a candle close beyond the level before acting.
Related Terms
- Breakout A move beyond an established support or resistance level, ideally on rising volume.
- Support A price zone where buying pressure has repeatedly stopped declines.
- Resistance A price zone where selling pressure has repeatedly capped rallies.
- Stop Loss An order that automatically closes your position at a predefined price to cap your loss.
Where You Will Meet This Term
You will run into fakeout constantly on any futures exchange, from the order panel to the position dashboard. If you are still building your foundation, our guides on leverage, liquidation and risk management connect the vocabulary into an actual trading process, and the full glossary covers every other term you will encounter.