Break and retest strategy
If the price successfully retests the support or resistance level and bounces off it, this confirms that the level is valid and that it can be used as a trading signal.
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However, it is important to note that not all breaks and retests are successful. Sometimes, the price may break through a resistance level and then immediately retrace back to the level without giving traders an opportunity to enter the market. This is known as a false break and can result in losses for traders who enter the market too early.
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However, it is important to note that not all breaks and retests are successful. Sometimes, the price may break through a resistance level and then immediately retrace back to the level without giving traders an opportunity to enter the market. This is known as a false break and can result in losses for traders who enter the market too early.
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Disclaimer
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