A true break of a support or resistance level is an entry opportunity. Throughout my trading history in crypto, I have experienced a true break of a support or resistance level as an entry opportunity or an exit opportunity. When a support or resistance level is broken, you can open a trade in the direction of the trend based on confirmations. However, if you have an open trade that is in a loss and the level is broken, you can close the trade to prevent further losses. Behind support or resistance levels is always the best place to place a stop loss.
But how does a real failure occur?
Support or resistance level breaks must be high in volume to be real. Breaks that go against the general trend are usually unreliable and can be false.
The appearance of strong candles with completed bodies can help to confirm the authenticity of a breakout, such as an engulfing candle. Most real breakouts occur on medium or long-term time frames with the release of important news.
In my experience, real breakouts occur when the price breaks out of the trend channel. If you want to distinguish real breakouts from false breakouts, you should pay attention to the price lows and highs in a trend. If the trend is up and a breakout occurs downward, pay attention to the price lows and highs in a trend. If the trend is up and a breakout occurs downward, pay attention to the price lows and highs in a trend. If the trend is up and a breakout occurs downward, pay attention to the price lows and highs in a trend to make the trend change closer to reality. A real breakout should be logical, experience high speed, and move vertically. In general, dear friends, support or resistance levels will eventually be broken, so you should be patient and take advantage of the opportunity with more confirmations.
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