Iron friends, today let's talk about the "fake entry" strategy in investing, which is a key "pitfall avoidance" knowledge!
In the chart, you can see that when the price forms liquidity above resistance zones or below support zones, false breakouts may occur. Fake entry refers to the behavior where the price ultimately retraces to the midpoint of the previous range, targeting breakout traders and retracement entry points. Once the price temporarily returns to the broken range, it will trigger new stop-loss orders.
For example, in actual trading, seeing the price break through resistance levels and happily entering the market, but it turns out to be a false breakout, resulting in being stopped out. Understanding "fake entry" can help us stay alert and avoid falling into these trading traps. Investing involves risks, the above content is for learning and reference only #黄金白银再创新高 $BTC
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Iron friends, today let's talk about the "fake entry" strategy in investing, which is a key "pitfall avoidance" knowledge!
In the chart, you can see that when the price forms liquidity above resistance zones or below support zones, false breakouts may occur. Fake entry refers to the behavior where the price ultimately retraces to the midpoint of the previous range, targeting breakout traders and retracement entry points. Once the price temporarily returns to the broken range, it will trigger new stop-loss orders.
For example, in actual trading, seeing the price break through resistance levels and happily entering the market, but it turns out to be a false breakout, resulting in being stopped out. Understanding "fake entry" can help us stay alert and avoid falling into these trading traps. Investing involves risks, the above content is for learning and reference only #黄金白银再创新高 $BTC