Hey there!
Lets continue learning. Today I'm talking about breakouts and fakeouts.
Breakout
A breakout is when a resistance (or support) level is broken. This means that the orders placed in that level have been fullfilled (or removed by their owners) and the price goes past that level. This usually means that the price will continue its trend and keep moving along the same direction.
Also, the more times the assset has tested that level, the stronger the trend after the breakout usually is.
As you can see in the image, the 9th of april, the pair EURUSD had a great breakout. It was testing a suport zone and when it broke it, it went well below that margin.
Fakeout
A fakeout is when an asset looks like is ging to break a support or resistance level and then it goes against the trend. This happens when there are actually two support levels. The second one can be hidden under the first one because it haven't been reached for a long time.
Conclussion
Be aware of this patterns. They can be tricky and even fake (pun intended). Remember this is not financial advice and that its just a learning path.
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