Market Notes｜$S ｜Breaking the 0.06 Level
First, a definition: Previous highs and lows are common reference levels. Having been turned back or held up at these levels in the past often influences buying and selling when the price reaches them again.
How to read it: The first rebound after a level is lost is often seen as a test. Being turned back near the level lends more credence to the idea that support has turned into resistance.
The same data can mean very different things in different market conditions, so don’t apply any single rule mechanically.
#S
First, a definition: Previous highs and lows are common reference levels. Having been turned back or held up at these levels in the past often influences buying and selling when the price reaches them again.
How to read it: The first rebound after a level is lost is often seen as a test. Being turned back near the level lends more credence to the idea that support has turned into resistance.
The same data can mean very different things in different market conditions, so don’t apply any single rule mechanically.
#S