XAUUSD How to deal with fake outs (tutorial)
Good morning gold gang! Im back with another educational piece this weekend getting ready for market open.
In this weeks i want to look at the fakeout. The fakeout is a false breakout of the key level. When price moves and closes outside of the level, the next step is to enter the trade. Sometimes what happens is price will close then shoot back up into the range. This is a fakeout.
The way i deal with them is i always make sure my entry is a pip or 2 after the wick of the previous candle .. normally what happens is the next candle will open before the wick and saving you from the entry. If this doesnt happen, then you take the loss like a man/woman/person and move on.
What NOT to do is change bias and take buys (in this case) as you can get faked out this way too .. a change in bias would be above the next htf resistance or key level.
Hope this was educational guys .. please like and follow along for more XAUUSD updates. I post daily and you dont want to miss them.
tommyXAU
In this weeks i want to look at the fakeout. The fakeout is a false breakout of the key level. When price moves and closes outside of the level, the next step is to enter the trade. Sometimes what happens is price will close then shoot back up into the range. This is a fakeout.
The way i deal with them is i always make sure my entry is a pip or 2 after the wick of the previous candle .. normally what happens is the next candle will open before the wick and saving you from the entry. If this doesnt happen, then you take the loss like a man/woman/person and move on.
What NOT to do is change bias and take buys (in this case) as you can get faked out this way too .. a change in bias would be above the next htf resistance or key level.
Hope this was educational guys .. please like and follow along for more XAUUSD updates. I post daily and you dont want to miss them.
tommyXAU