#AIImpactOnForex AI Predicting False Breakouts and Fakeouts In trading, false breakouts and fakeouts occur when price action briefly moves beyond a key level (support, resistance, or trendline) but quickly reverses, trapping traders. Artificial Intelligence (AI) can help predict these events by analyzing large datasets, detecting subtle patterns, and assessing market conditions (like volume, volatility, and order book activity) that often accompany fakeouts. Machine learning models, especially deep learning and reinforcement learning, can be trained on historical price action to recognize the signals that differentiate genuine breakouts from false ones. By doing so, AI systems aim to reduce trader losses and improve strategy accuracy.