Market Notes｜$FIL ｜Break Below the 1.15 Level
Definition: Common criteria for confirming whether a breakout is valid include closing on the other side of the level, failing to fall back below it on a retest, and seeing volume expand as the price crosses it.
How to read it: The first pullback after moving above a level is often seen as a litmus test. If the price stabilizes near the level, the idea that resistance has turned into support is more credible.
Indicators can be wrong, but risk management shouldn’t be skipped: deciding in advance what to do if you’re wrong is more important than guessing correctly.
Definition: Common criteria for confirming whether a breakout is valid include closing on the other side of the level, failing to fall back below it on a retest, and seeing volume expand as the price crosses it.
How to read it: The first pullback after moving above a level is often seen as a litmus test. If the price stabilizes near the level, the idea that resistance has turned into support is more credible.
Indicators can be wrong, but risk management shouldn’t be skipped: deciding in advance what to do if you’re wrong is more important than guessing correctly.