What do you do if a support or resistance breaks, but then the price quickly returns to that level?
What do you do if a support or resistance breaks, but then the price quickly returns to that level?
That could be a false break.It is best to wait to see how the price reacts in your second attempt.If you respect this time, it can be a good opportunity to enter.
Yes, 15 -minute graphics can generate many false signals.I would recommend that you focus on larger time frames, such as 1 hour or 4 hours, where the signals are more reliable.If the price breaks a level and then returns quickly, it can be a sign of a false break.In those cases, I hope to see how the price behaves before making a decision.
Price behavior after a false break is crucial.Do not hurry to enter again until the price confirms that it has respected the level in its second touch.
I am really like this thread!I have learned a lot about supports and resistance, thanks for sharing.
I'm glad you are learning.Supports and resistances are the basis of any solid technical analysis.If you master them, you already have much of the path traveled.
Do you use an additional filter to confirm the input signals, such as candle patterns or volume?
Candle patterns are an excellent confirmation, especially if you see an envelope or a hammer at a key level.The volume can also help, but in Forex, it is more difficult to trust it due to the lack of centralized data.
I do not usually use other filters as volume.However, I do pay attention to candle patterns in shorter time frames to confirm entries.If I see a reversion pattern at a support or resistance level, that gives me more confidence to enter the operation.
Candle patterns such as fleeting envelopes or stars are clear signs that the market is respecting the level.With them, your tickets will have much stronger support.
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