What is ‘Fakeout’
A term used in technical analysis to refer to a situation in which a trader enters into a position in anticipation of a future transaction signal or price movement, but the signal or movement never develops and the asset moves in the opposite direction.
Explaining ‘Fakeout’
The possibility for fakeouts is the reason why traders should use more than one indicator to make decisions. To reduce the probability of being faked out, experienced traders will require four or more signals to confirm a decision.
Further Reading
- Mergers, buyouts and fakeouts – www.jstor.org [PDF]
- Study on Regional Disparity of Land Finance and Its Substituting Financing Mechanism – en.cnki.com.cn [PDF]
- Teaching Austrian Economics to Graduate Students – papers.ssrn.com [PDF]
- From the Great Wall to Wall Street: a cross-cultural look at leadership and management in China and the US – www.tandfonline.com [PDF]
- Alternative disciplinary mechanisms in different corporate systems – www.sciencedirect.com [PDF]
- Governance by exit: An analysis of the market for corporate control – books.google.com [PDF]
- Value effects of corporate consolidation in European retailing – www.emerald.com [PDF]
- Intellectual property and patent in cosmetics – dspace.marmara.edu.tr [PDF]
- Goodwill, profitability, and the market value of the firm – www.sciencedirect.com [PDF]
