What is a Vertical Line?
December 5, 2021
Support and Resistance Level Breakthroughs
December 5, 2021

False Breakthroughs

A false breakthrough is when the chart goes beyond the support and resistance levels but then returns to the price corridor.

Look carefully at the chart to distinguish a false breakthrough from the real one.

If the candlestick closes below the support level or above the resistance level, so that approximately ¾ of its body is outside of the price corridor, then the breakthrough is real.

If the candlestick closes below the support level or above the resistance level, so that less than ¾ of its body is outside of the price corridor, then the breakthrough is false.

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