When you see a breakout, do you immediately enter a trade? Chances are... you’ve encountered fake breakouts like this before... We’ve developed Fakeout Hammer Pattern, a unique indicator designed to help you double-check breakouts. Want to see what it can do? Let me illustrate a 2-contract trade using this innovative tool. First, I'll let the indicator identify low volatility periods and check for breakout signals within a 10-candle range. The indicator recognizes a breakout when it finds a candle with the largest body compared to the previous 9 candles. Rather than jumping into a trade at the first sight of a breakout signal, I let the indicator confirm whether it's a fake breakout by tracking the next 5 candles. After the breakout candle appears, a 2nd candle follows with a body larger than the breakout candle, moving in the opposite direction. This signals a breakaway and verifies that the initial breakout was a fakeout. The market now shows potential for an upward move. To enhance the reliability of entry signals, the indicator analyzes the next 2 candles. Since these candles do not exceed the breakaway candle's body size, and their closing prices remain above half of the breakaway candle’s body, the indicator generates an entry signal. With the entry signal confirmed by the Fakeout Hammer Pattern, I am now ready to enter the market with a buy position using 2 contracts. For the stop loss, I’ll place it just below the lowest price of the breakaway candle. This is because a drop below this level indicates a higher likelihood of a downward movement. For targets, I’ll set a reward-risk ratio of 1:1 for the 1st contract and a 2:1 ratio for the 2nd contract. Click here to find out more about Fakeout Hammer Pattern! Plus, you can get our latest indicator for just $346, which is a 46% discount OFF the usual $596 during the launch event. Don't miss out!
The problem with this approach is you are going to miss a good chunk of the strongest moves waiting for confirmation. BOs inherently have a high failure rate. More than half your BOs can fail and you will still be profitable.
Thank you for your comment! Fakeout Hammer Pattern is an indicator that helps identify reliable signals by detecting fake breakouts. If you're looking to catch real breakouts, you might want to check out our other options like Darvas Pro Max or Sidewayz RT. If you have any more questions or need further assistance, feel free to let us know!