You may buy a breakout that looks like a ‘sure bet’ to you, exposing yourself to the market, then if you get caught in one of these false breakouts, you must cover back your position, you and many, many other traders as well. False breaks are not necessarily possible to trade as they’re happening, however, if you know how to read the chart from left to right, false breakouts help you understand the dynamics of the chart. The fakey is a contrarian signal itself, it occurs when we get a false-break from an inside bar signal; price initially breaks one way from the inside bar but then reverses, trapping everyone on the wrong side of the breakout, creating the false-break and usually a subsequent move the opposite direction.