Technical Note | $UAI | Breaking Through the 0.09 Level
First, the definition: A level of resistance that is truly broken often becomes support afterward; a level of support that is decisively broken often becomes resistance.
Next, how to read it: The first rebound after a breakdown is often seen as a litmus test. If the price is rejected below the level, the idea that support has turned into resistance is more likely to hold.
Indicators may be inaccurate, but risk management is essential: thinking ahead about what to do if your judgment is wrong matters more than whether your prediction is right.
First, the definition: A level of resistance that is truly broken often becomes support afterward; a level of support that is decisively broken often becomes resistance.
Next, how to read it: The first rebound after a breakdown is often seen as a litmus test. If the price is rejected below the level, the idea that support has turned into resistance is more likely to hold.
Indicators may be inaccurate, but risk management is essential: thinking ahead about what to do if your judgment is wrong matters more than whether your prediction is right.