Hello everyone, i have a question about a fakeout or not.
I will post 3 pictures 1)H4 timeframe 2)Daily 3)Weekly
And i am trading from H4 , do you think my trendline is correct (because i see a lot of support/resistance at that area) or should i consider that it made a higher high and draw my resistance up there??
Also at Daily is a clearer price movement and at weekly the clearest which is an obvious fakeout.
Thank you for your time = )
Hello,
The horizontal levels on your charts are s/r levels, not trendlines.
S/R levels are price zones, not exact price points. If there were horizontal lines on the price points you circled on your weekly and daily charts, the area between those lines and the existing s/r levels on your charts would be the “s/r zone”.
Here is a way to protect against “fake outs”.
If price holds at a certain s/r level then bounces, wait for a retracement back near the s/r level w/o a violation of the level to enter in the direction of the bounce.
If a b/o violates an s/r level, wait for a retracement back near the s/r level w/o a violation of the level to enter in the direction of the b/o.
This doesnt work everytime, but the general idea is dont anticipate, wait for confirmation instead
Good work on opening out your perspective from short-term to daily and weekly TA. Price levels from these should have much more significance in a trading plan.
