top of page
Search

How to deal with V-Shape fake outs

Updated: Jul 19, 2021

"update 19-07-21"

New V-shape fake formed on the UC see image below:




V-Shape fake out is another way of thinking of a Head and Shoulders (H&S), but I classify them as being more aggressive. Coupling it with a fake break of a SR level or top/bottom of range, it can be a very high probability trade. If you have sold short on the break and it gives you a full (A point) stop then you can immediately think of a cover trade.


Check out this example on the GBPUSD... An aggressive move to break the bottom of the range and an immediate upside move, without hesitation, to write it back off. This means there are simply no sellers and the value of GU is oversold.


Here is another - the USDJPY where it tried to break out of the lower end of the Rectangle and again immediatly wrote it back off.


See if you can find other examples?

 
 
 

Comments


© 2013, Inc. All Rights Reserved

Contact

MELBOURNE

Suite 2, Level 2,

349 Collins Street,

MELBOURNE VIC 3000

 

Tel: +61 0489 081 500

Email: team@lepusproprietarytrading.com.au

General Advice & Risk Disclaimer, Trading Risk Warning:

The information provided on this website is of a general nature only and does not take into account your objectives, financial situation, or needs. Before making any financial decision, you should consider whether the information is appropriate for your circumstances and seek independent professional advice if necessary. We do not provide personal financial advice or recommendations tailored to individual situations. Any financial products or services mentioned are for informational purposes only and do not constitute an offer, solicitation, or recommendation to buy or sell.


Trading foreign exchange and futures on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange or futures, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment, and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange and futures trading and seek advice from an independent financial adviser if you have any doubts.

Past performance of financial products is not an assurance of future performance.

Lepus Proprietary Trading is a trading name of Wolverton Investment Group Pty Ltd (ACN: 639 257 613) (Corporate Authorised Representative No. 1314535 of Australian Financial Services License 460940)

  • White Twitter Icon
  • White LinkedIn Icon
  • White Facebook Icon
bottom of page