MASTERING ENTRY POINTS

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The Power of Ending Patterns and Fakeouts


In professional trading, entries make or break performance. It’s not just about identifying the trend, but knowing exactly when to strike with clarity, precision, and conviction.

This blog dives deep into a powerful concept: ending patterns, and how fakeouts near key support and resistance levels reveal high-probability entry points. These are moments when the market shakes out the weak hands… and opens the door for professionals.

What Are Ending Patterns?

Ending patterns are formations that appear at the exhaustion phase of a move, typically near major support or resistance zones. They're deceptive by nature. While retail traders interpret them as breakouts or breakdowns, seasoned traders recognize them for what they are: trap zones.

These patterns often feature:

  • Multiple touches of a key level (support or resistance),

  • A final aggressive spike beyond the level (the fakeout),

  • A swift reversal back inside the structure.

That’s where opportunity lives.

Buy Entries: The Support Fakeout Play


The Setup:

  1. Price approaches a strong historical support zone.

  2. It tests the level multiple times, often forming a base.

  3. Suddenly, a candle closes below support  triggering panic.

  4. But instead of follow-through, price quickly reclaims the level.

Why It Works:

  • That move flushes out stop-losses from early buyers.

  • It tricks breakout sellers into shorting at the worst moment.

  • Smart money uses the liquidity to accumulate long positions.

Ideal Entry:

Enter after price closes back above the support level. The candle reclaiming the zone is your confirmation. It's even stronger if the fakeout was accompanied by a volume spike or a rejection wick.

 Example in Practice:

Think of EURUSD retesting a weekly support zone. Price pierces it with a strong red candle, trapping breakout traders. Within the next candle or two, it sharply reverses and closes back above your signal to buy, while everyone else is shaken out.

 Sell Entries: The Resistance Fakeout Trap



The Setup:

  1. Price tests a strong resistance zone multiple times.

  2. Momentum builds anticipation of a breakout rises.

  3. Then, price closes above the resistance, giving a false signal.

  4. But it fails to continue. Within a few candles, it drops back inside the range.

Why It Works:

  • FOMO traders buy the breakout.

  • Their stops are tight, just below the resistance.

  • When the price reverses, it triggers a cascade of stop-losses, accelerating the move down.

Ideal Entry:

Enter short after a strong close back below resistance. This confirms the false breakout and suggests distribution by large players.

Psychological Edge: Why These Entries Work

Price doesn’t move randomly; it reflects human behavior. Most traders:

  • Chase breakouts,

  • Place stops too tight,

  • Overtrade when emotions run high.

Ending patterns exploit that. They create the illusion of a breakout to trap emotional traders, then reverse in favor of the informed.

This aligns with core trading wisdom: Buy when others are fearful; sell when others are greedy.

Final Thoughts: Precision Is Everything

Great traders don’t chase price they wait for price to come to them.

Ending patterns and fakeouts offer that moment. But only for those who are patient enough to:

  • Wait for the trap,

  • Confirm the reversal,

  • Execute without hesitation.

These setups appear across all markets, forex, crypto, indices, and on any timeframe. Master them, and you'll find your entries become clearer, tighter, and far more rewarding.

Recap

Scenario Pattern Description Entry Trigger
Buy Setup Multiple support touches + fakeout below Close back above support
Sell Setup Multiple resistance touches + fakeout above Close back below resistance

Want to improve your entries further? Study your own past trades, mark these patterns on charts, and journal the setups. Over time, they’ll jump out at you and your confidence will follow.

Let the retail crowd get trapped. You? You’ll be the one pulling the trigger after the trap is set.


FOREX MONKS COMPANY LTD [VIP]

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