Fakes are more frequent than commonly known.
Each situation needs to be reviewed independently to assess if the rally has potential, if the breakout is sustainable and if it will lead to big movements.
Here:
1) Clearly there is no potentially for big daily movements.
2) The potential overall would be limited to 3%.
3) The likelyhood of a sustainable rally is average.
Overall the probability of a fake breakout is far from negligible and if not the potential is limited.
Each situation needs to be reviewed independently to assess if the rally has potential, if the breakout is sustainable and if it will lead to big movements.
Here:
1) Clearly there is no potentially for big daily movements.
2) The potential overall would be limited to 3%.
3) The likelyhood of a sustainable rally is average.
Overall the probability of a fake breakout is far from negligible and if not the potential is limited.
