Technical Notes | $LIT | Breached 3 Key Levels
Definition: Common ways to judge whether a breakout is valid include closing on the other side of the level, failing to reclaim it on a pullback, and seeing volume pick up as the price breaks through.
How to read it: The first pullback after a breakout is often seen as a test. If the price can hold near the level, the idea that resistance has turned into support is more convincing.
Indicators may be inaccurate, but stop-losses are essential: deciding in advance what to do if your judgment is wrong matters more than guessing whether you’re right.
Definition: Common ways to judge whether a breakout is valid include closing on the other side of the level, failing to reclaim it on a pullback, and seeing volume pick up as the price breaks through.
How to read it: The first pullback after a breakout is often seen as a test. If the price can hold near the level, the idea that resistance has turned into support is more convincing.
Indicators may be inaccurate, but stop-losses are essential: deciding in advance what to do if your judgment is wrong matters more than guessing whether you’re right.