False Breakthroughs
December 5, 2021
How to Draw Support and Resistance Levels
December 5, 2021

Support and Resistance Level Breakthroughs

The chart goes beyond the support and resistance levels periodically and breaks through them.

If the price drops sharply and continues to decline, the support level becomes the resistance level.

This happens when traders begin to actively sell an asset and its value drops sharply.

If the asset price rises sharply and continues to increase, the resistance level becomes the support level.

The reason for such a breakthrough is a large volume of asset purchases and a rise in its value.

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