Thread about Retracements and Breakouts:
A retracement is a small counter-trend within a trend.
For example, in a strong uptrend, you have a retracement when the rise in prices is periodically interrupted by downward corrections.
(Next tweet you have a photo of a retracement)
A retracement is a small counter-trend within a trend.
For example, in a strong uptrend, you have a retracement when the rise in prices is periodically interrupted by downward corrections.
(Next tweet you have a photo of a retracement)
In an uptrend, the start of a pullback is always a resistance and the minimum recoil level is always a support.
A retracement is a trend in itself, but of shorter duration than the general trend in which it is part of.
A retracement is a trend in itself, but of shorter duration than the general trend in which it is part of.
A pullback can be an opportunity for those investors who missed the opportunity to join the trend at one point.
Now, given the drop in prices in a uptrend, we could take positions in the trend, with a more profitable price.
Now, given the drop in prices in a uptrend, we could take positions in the trend, with a more profitable price.
Bounces are a variant of retracements. There are mainly two types:
1. Pullbacks: After a breakout to the downside, occurs a “pullback” when prices return to temporarily stand above the broken supports.
1. Pullbacks: After a breakout to the downside, occurs a “pullback” when prices return to temporarily stand above the broken supports.
2. Throwbacks: After a breakout to the upside, occurs a “throwback” when prices return to momentarily fall below the broken resistances.
BREAKOUT:
A breakout occurs when a price “breaks” a support or resistance level or zone.
And also a breakout occurs when a trend line is broken, breaking it is a signal that the trend may be running out.
A breakout occurs when a price “breaks” a support or resistance level or zone.
And also a breakout occurs when a trend line is broken, breaking it is a signal that the trend may be running out.
A breakout usually signals that a significant change in supply and demand has occurred and that a new trend may be about to start.
However, false breakouts are frequent.
A very good indicator to know if we are in a false breakout is volume.
Volume precedes price.
However, false breakouts are frequent.
A very good indicator to know if we are in a false breakout is volume.
Volume precedes price.
This thread is an example of the content I am creating.
I hope you enjoyed it and learned something new.
Next month this content will come to light. Discord moderators and I are preparing everything.
I will give you more information next month.
Always willing to help;
Soulz.
I hope you enjoyed it and learned something new.
Next month this content will come to light. Discord moderators and I are preparing everything.
I will give you more information next month.
Always willing to help;
Soulz.
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