After the breakout, the market comes back to retest the resistance
level that becomes support before it goes up.
The pullback is your second chance to join the buyers if you miss the
breakout.
But Pullbacks don’t always occur after every breakout, when it occurs,
it represents a great opportunity with a good risk to reward ratio.
What you have to remember is that a ranging market moves
horizontally between the support and the resistance level.
These are the key levels that you have to focus on. The breakout of the
support or the resistance level indicates that the ranging period is
over, so you have to make sure that the breakout is real to join the
new trend safely.
level that becomes support before it goes up.
The pullback is your second chance to join the buyers if you miss the
breakout.
But Pullbacks don’t always occur after every breakout, when it occurs,
it represents a great opportunity with a good risk to reward ratio.
What you have to remember is that a ranging market moves
horizontally between the support and the resistance level.
These are the key levels that you have to focus on. The breakout of the
support or the resistance level indicates that the ranging period is
over, so you have to make sure that the breakout is real to join the
new trend safely.