New Traders Must Learn This: What Is a Breakout?
๐ In Simple Words:
๐ผ If the price keeps going up and falling back down, that's called resistance.
๐ฝ If the price keeps dropping and bouncing back up, that's called support.
If the price keeps moving between these two levels, it's a rangebound market.
When a Breakout Happens:
If price breaks above resistance
it's a buying opportunity for buyers.
If price breaks below support
it's a selling opportunity for short sellers.
๐ In both cases, if the price returns to the breakout level (retest)
and then moves again in the same direction
the breakout is confirmed.
๐ Key Lesson:
Entering too early can trap you in a fake breakout. Waiting for a retest confirmation safer entry, whether you're buying or selling.
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