Indicator Notes | $JCT | Breaking through the 0.003 level
First, the definition: A commonly observed pattern is that a resistance level that is decisively broken often becomes support, while a support level that is decisively broken often becomes resistance.
Next, how to read it: The first rebound after a breakdown is often seen as a test. If price is pushed back down near the level, that lends support to the idea that support has turned into resistance.
Don’t place orders during the most volatile few minutes of a move. Wait for the candlestick to close and stabilize before assessing the situation.
First, the definition: A commonly observed pattern is that a resistance level that is decisively broken often becomes support, while a support level that is decisively broken often becomes resistance.
Next, how to read it: The first rebound after a breakdown is often seen as a test. If price is pushed back down near the level, that lends support to the idea that support has turned into resistance.
Don’t place orders during the most volatile few minutes of a move. Wait for the candlestick to close and stabilize before assessing the situation.