The pivot points, like conventional Support and Resistance levels, do not last forever. At some point, the price will break out of these ranges. We always purchase at support and sell at resistance in our range strategy. However, there are instances when the market breaks out from these levels.
Trading the Breakout, you can have a starter position (small position) once the breakout occurs and then enter heavily once the price retests the new support. In trading terms, this is called the ‘role reversal’ concept. This concept simply means the turning of ‘resistance into support’ and ‘support into resistance’ For example, when the price breaks below the support level , it is not a ‘support’ anymore; but is now ‘resistance.’
Here for example we've entered LCID once it broke out of the resistance trend line . This means that LCID is starting a trend reversal and has a good chance of starting a strong momentum to the upside.
LCID extremely Bullish
I personally prefer trading breakouts instead of "guessing" when the trade will break out. This helps us in catching strong momentum plays at the right time.
Trading the Breakout, you can have a starter position (small position) once the breakout occurs and then enter heavily once the price retests the new support. In trading terms, this is called the ‘role reversal’ concept. This concept simply means the turning of ‘resistance into support’ and ‘support into resistance’ For example, when the price breaks below the support level , it is not a ‘support’ anymore; but is now ‘resistance.’
Here for example we've entered LCID once it broke out of the resistance trend line . This means that LCID is starting a trend reversal and has a good chance of starting a strong momentum to the upside.
LCID extremely Bullish
I personally prefer trading breakouts instead of "guessing" when the trade will break out. This helps us in catching strong momentum plays at the right time.