How do you guys handle fakeouts?

the market is full of them all the time in trying to take out traders stop losses. they happen too often.How do you guys handle it??

Trading the best setups and using a good money management.

Look for engulf one way, taking out lows or highs, then a FO the other way.

Price must engulf something meaningful, there are other conditions, but that is for a whole other thread.

Warren

Use it to my advantage.

They are fewer at the higher TF's but any unsure trades are accompanied by very tight SL's just in case.

trade with 4 hour chart , add SL below or above support / resistance in 4h chart candles , this is what my experience

After a breakout always trade the retest.

To learn more, I would suggest the wizard or wmd (on this site) for horizontal support/resistance or Steve W for trendines. Like MatrixFX suggests, higher timeframes increases your probability.

http://www.forexfactory.com/showthre...45#post7376745

I don't trade fake outs; I trade freak outs.

your "fake-out" is someone else's tp.

That chart you have there really doesn't say much. The question you have to ask yourself is this, is it EUR selling or USD buying that is causing the resistance?

Although they might make the bar appear the same they make a big difference with any meaningful analysis. You're just not trading with enough information.