A Fakeout (Fake Breakout) is a form of manipulation to trap breakout traders.
If a breakout trader sees that there is a big breakout which break through a strong resistance or support, he thinks it will continue to break into the end of the world.
However, the price makes the reverse and then it comes back to the stop loss of the breakout trader.
The Fake Out incident itself is Manipulation.
They are in a position to protect The Fake Out Level and eliminate retail traders in this area.
1. Support and Resistance trader enters the market, when there is swing high, sometimes there is Candlestick Reversal Signal too.
2: Pullback trader and breakout trader open a buy order at
once and then taking Stoploss Support and Resistance trader.
3: Big Order enters, takes out order breakout trader and pullback trader.
The traders who initially entered the market in GREED, have now lost their willingness to enter the market for FEAR.
4: The market is now in a state of calm.
So the price goes ahead of the initial decision to reverse the first Swing High.