To many traders over complicate the easy stuff. If a level breaks its likely to retest if the level does not retest and price breaks back above (or below depending if it was S or R that broke) then the move becomes a false breakout. This has been the way of price action since day 1, as traders we do not need to invent anything new. The element of a traders trading that requires the most work is their mindset.
AUDUSD daily time frame we can identify a proven level of support which is now resistance. What does proven level mean? The term proven level is when price has once been a clear level of support or resistance with at least 2 tests before a break, then the support or resistance has become resistance or support once again with at least 2 tests. These are great levels to identify and hold more weight than a standard minor level or S/R. At present we can also identify on the daily chart that the old support now resistance is being retested. Entry will not be on the daily time frame but possibly on the 1 hour or 15 minute time frame with the correct confluences. If price breaks above this level then shorts will not be valid and we can treat the breakout as a fake out.
AUDUSD daily time frame we can identify a proven level of support which is now resistance. What does proven level mean? The term proven level is when price has once been a clear level of support or resistance with at least 2 tests before a break, then the support or resistance has become resistance or support once again with at least 2 tests. These are great levels to identify and hold more weight than a standard minor level or S/R. At present we can also identify on the daily chart that the old support now resistance is being retested. Entry will not be on the daily time frame but possibly on the 1 hour or 15 minute time frame with the correct confluences. If price breaks above this level then shorts will not be valid and we can treat the breakout as a fake out.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.