Price breaking through a level is no guarantee that it will continue. A few things traders usually watch:
- Momentum: the breakout candle has a decisive body, not just a poke of the wick.
- The close: price closes beyond the level on the reference timeframe, not merely touching it.
- Retest: after breaking through, price often comes back to test the level from the new side before continuing.
False breakouts (fakeouts) often happen around news or when liquidity is thin.
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