Fakeouts & liquidity
The poke, the snap-back, and who it feeds.
Anatomy of a fakeout
Price pokes above resistance, leaves a long upper wick, and closes back below. Everyone who bought the poke is now trapped — their selling adds fuel to the fall.
Think in stops, not signals
Obvious levels have obvious stop placements just beyond them. The market pokes those stops, fills large orders into them, and continues. It is not a conspiracy; it is an order book.
Quick check
A candle wicks far above resistance but closes below it. Most useful conclusion?
- The break was rejected — trapped longs may sell
- The breakout succeeded
- Support is broken
- Nothing observable
A wick visit with a close back inside is rejection. The trapped breakout buyers become the next source of selling.
This lesson is part of the free learning path at /academy/ — progress, XP and boss games live there.
Educational content only — not financial advice.