Video Synopsis – The Forex Fakey “inside bar false break trading setup”
In the above forex trading educational video I discuss a price action fakey setup that occurred on the EURUSD fx pair.
In this video I demonstrate how to trade the fakey and what to look for prior to taking an entry:
The simplest way to define a fakey is an inside bar breakout that fails. If the trend is down we want to short a break down, if the trend is up we want to buy a break to the upside. The fakey setup is a professional trading strategy because most amateurs buy breakouts or try to pick tops / bottoms, the fakey plays off of these amateur trading mistakes.
Once we get a false break from the inside bar / mother candle structure, we can take a position once the market starts to move back in the opposite direction after all the stop losses have been taken out and the amateurs begin to panic. This video is an example of how to trade the fakey setup reversal bar entry.