Learn to identify fake breakouts in trading with price action indicators. A trader explains how their secret indicator helped them identify a fake breakout in gold and make a profit. The video emphasizes the importance of looking for multiple confluences in trading and avoiding a reliance on a single indicator. The trader suggests joining their telegram channel for more resources and ideas.

How to Identify and Trade Fake Breakouts like a Pro

Introduction: Trapped by Fake Breakouts

Are you tired of getting trapped by fake breakouts? Do you feel like you’re not getting what you expect from the market? If so, this video is for you. In this article, we’ll explore a simple way to identify fake breakouts like a professional trader and take advantage of them for maximum profits.

Identifying Fake Breakouts with Price Action

On a trading day when the London session opened, we noticed that price had been creating a consolidation with a retail wedge or triangle pattern. Retail traders would normally enter around this area expecting a continuation from the breakout. However, we identified this breakout as potentially fake, and we knew we had to determine if it was genuine or not.

Using a Price Action Secret Indicator

To identify if the breakout was fake, we simply put on our Price Action Secret Indicator. It was creating a lower high while price was creating a higher high. This indicated to us that the original institutional order flow was on the short side, meaning the breakout was likely fake. The goal was to manipulate retail traders, trap retail bulls, and hunt sellers’ stop losses.

Taking Short Positions and Profitting

When price started breaking market structure, creating lower lows, we were ready to put on our short positions. That’s exactly what we did and grabbed about 105 pips on our signal channel. We were able to catch a move worth hundreds of pips by identifying a fake breakout and taking advantage of it with our Price Action Secret Indicator.

The Importance of Confluences

It’s important to note that there is no holy grail in trading, and no single indicator can do everything for you. However, a good indicator can give you an edge and make your life easier. The Price Action Secret Indicator gives you that edge to locate fake breakouts and catch moves worth hundreds of pips. To take advantage of this, you must look for other confluences, just like we did.

Joining the Telegram Channel

If you want to know more about our signals, trading ideas, videos, chart breakdowns, and advanced analysis, you must join our Telegram channel with over 300,000 traders. The link is in the description below.

Conclusion: Get Smart about Breakouts

In conclusion, identifying fake breakouts is critical for your success as a trader. The Price Action Secret Indicator can help you take advantage of these opportunities and make more profit. By looking for confluences and educating yourself on the market, you can become a pro at spotting fake breakouts and taking the other side for maximum gain.

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