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How NOT to get faked out in trading?

Updated: Apr 28

Introduction


Breakout and Reversal Volume profiles

A flag is only a flag AFTER it breaks out. A trend break is only a trend break AFTER it breaks. A reversal is only a reversal AFTER it reverses.


In short, charts are great, but they are LAGGING indicators. Thousands of fake signals can be sent by printing fake patterns on the chart only to fake people out. But Forecasts CANNOT lie.

What is different in the charts below?

Hint: Volume


Now, what do you do?

Imagine you could look in the future and know how much volume would be traded.


Conclusion

If you knew how much volume would be traded in advance, you can know the pattern that could follow. Breakouts and reversals volume profiles are different.


Volume forecast gives you the volume profile in advance making it easier to distinguish if the next move will be a reversal or a breakout.


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