Indicator Notes | $BAT | Breaking through the 0.18 level
First, a definition: A common rule of thumb is that a resistance level that has been decisively broken often becomes support, while a support level that has been genuinely broken often turns into resistance.
A common interpretation: When prices are chopping back and forth around a key level, stop-losses on both sides may get triggered repeatedly. Keeping positions small—or staying light—may be a better choice until the direction becomes clear.
The same reading can mean very different things in different market conditions, so don’t blindly apply any single rule of thumb.
#BAT
This is just my personal opinion, not a basis for making trading decisions.
First, a definition: A common rule of thumb is that a resistance level that has been decisively broken often becomes support, while a support level that has been genuinely broken often turns into resistance.
A common interpretation: When prices are chopping back and forth around a key level, stop-losses on both sides may get triggered repeatedly. Keeping positions small—or staying light—may be a better choice until the direction becomes clear.
The same reading can mean very different things in different market conditions, so don’t blindly apply any single rule of thumb.
#BAT
This is just my personal opinion, not a basis for making trading decisions.