Fakeout
a.k.a. False breakout, Head fake
The door swings open, everyone rushes through, and it slams shut on their fingers.
In plain English
When price breaks through a key level, then quickly reverses back, trapping traders who jumped in on the break.
A fakeout is a breakout that lies. Price pokes above resistance or below support, triggers a burst of orders, then slams back into the old range.
They are common in thin markets and around key levels where many stops sit. Waiting for a candle close, a retest or other confirmation filters some of them. See bull trap and bear trap.
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