Definition
When price moves past a level as if breaking out, then quickly reverses back inside.
The story
NQ (E-mini Nasdaq-100 futures) pushes above yesterday's high, traders who bought the breakout pile in, and minutes later price drops back below the level. That failed move is a fakeout. It's one reason many traders wait for a close beyond the level, or for a retest, before trusting a break.
Why you'll see it
Commentary uses it when a breakout quickly fails.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms