Technical Note | $EVAA | Breaking through the 0.9 level
Definition: To determine whether a break below a level counts, common criteria include closing on the other side of the level, failing to reclaim it on a retest, and a surge in trading volume during the breakout.
Common interpretation: The level itself does not determine whether prices rise or fall. It is more often where the contest between buyers and sellers is most concentrated; ultimately, trading volume helps determine the direction.
Reading indicators isn’t hard. The hard part is sticking to the rules when the market gets especially volatile.
Definition: To determine whether a break below a level counts, common criteria include closing on the other side of the level, failing to reclaim it on a retest, and a surge in trading volume during the breakout.
Common interpretation: The level itself does not determine whether prices rise or fall. It is more often where the contest between buyers and sellers is most concentrated; ultimately, trading volume helps determine the direction.
Reading indicators isn’t hard. The hard part is sticking to the rules when the market gets especially volatile.
