Fakeout
Volume Price Analysis glossary · Support, Resistance & Breakout Mechanics
Definition
A false breakout from a congestion zone, typically on low volume, designed to trap traders.
Fakeout in plain English
A "congestion zone" is a price range where the market has been drifting sideways, coiled up and undecided. A fakeout is when price briefly pokes OUT of that range — looking like it's finally breaking free — but it's a trick: it snaps right back in. Because it usually happens on low volume (few real buyers or sellers behind it), it's often a deliberate trap to lure eager traders in before reversing on them. Recognizing the weak volume is how you avoid getting suckered by the false move.
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