True fracture and false fracture 🤔
True breakout: When the candle closes its entire volume below the support line or above the resistance line.
False breakout: When the candle has a lower or upper shadow below the support or resistance line.
Examples of fractures and penetrations ⬇️
Candle 1 on the support line: If candle 2 has a lower shadow below the support line, candle 3 is not considered a true breakout if it closes above the lower shadow. However, if candle 3 closes below the lower shadow, it is considered a true breakout.
Candle No. 4: It is considered a real breakout because it closed its entire volume below the support line that turned into resistance.
Candle No. 6: If it forms an upper shadow above the resistance line, this is considered a breakout of candle No. 7. If it does not, we wait for the next candle to determine the breakout.
Candle No. 8: It is considered a real breakout because it closed its entire volume above the resistance line, which turned into support.
Candlestick analysis ⬇️
Candles 1, 2, 3, 4, and 5: Show trading above and below the support line, indicating no real breakout.
Candle No. 6: It has a long lower shadow, which indicates a buy after a decline, but the close below the resistance line indicates a possible price jump and opening of a target in candle No. 7.
- Recurrence of the condition: If this condition is repeated at the end of trading, it may indicate a rise the next day.
Any candle that penetrates by less than half of its body, a return to the test is inevitable. Any candle that penetrates by more than half of its body, the test is after the next resistance is breached. ⬇️📸
.............................
🔔📝 Don't forget to like 👍 and follow to encourage us to receive all that is new. I love whoever said done. Thank you 😍
............................