Be Careful of Fakeout and Make Your Profits Soar!

Many technical investors believe the saying “buy on breakout”, but in some cases, the stock price may briefly break past the resistance level but then quickly return to it, forcing investors to cut losses.

So, how to distinguish Fakeout and Breakout? Today Cici will take a classic bullish pattern - double bottom as an example and share a practical tip:

It is worth noting that sometimes even after a retest, the stock price may fail to break out. In such cases, it is important for investors to consider whether to continue holding the stock or to cut losses objectively.

Additionally, combining candlestick patterns with breakout and fakeout can further assist us in making informed decisions.

Have you ever experienced a fakeout? How did you handle it? You can share your experience in the comments sections.