EFFECTIVE MARKET PROFITABILITY: IDENTIFYING FAKEOUTS, SHAKEOUTS, AND BREAKOUTS
Three ideas have the power to completely alter your trading choices and keep you from losing all the time. However, it would be more difficult to recognize than the typical ideas you have already encountered.
Let's dissect them.
A confirmed broken support or resistance is known as a breakout, and it may signal the start of another strong wave of possible upswings or downswings. similar to what occurred with the Bitcoin breakout, which was caused by news, increased purchasing pressure, and other factors. Regarding the shakeout, it is possible that late shorts will be shaken out below the support and late longs with strong leverage would be shaken out from above the resistance. As soon as these entrants are shaken out, the original trend will resume, particularly if they contain large leverage and unmanaged risks. Because there won't be any indications of a confirmed breakthrough, fakeouts often trick traders into thinking there might be a breakout. It could result in a reversal of the initial trend, with impulsive price movements that diverge from the original trend.
How can one determine if the cryptocurrency market is experiencing a fakeout, shakeout, or breakout?
because of the cryptocurrency market's propensity to produce situations that render a strategy ineffective. To benefit from what comes next, it would be best to recognize these three ideas. Once you see weakness on the resistance, these will be confirmed by the sudden downward movements that seem to be pulling the market down. This could also work vice versa with a breakdown for the shakeouts and fakeouts that might happen.
These posts are for educational purposes. To guide the people who might still be struggling within the crypto market, those who are new to the environment and volatility and everyone else who needs it.
Stay wise, trade cautiously.
