Assume the red horizontal line is range high. Would the candle marked by a red arrow be considered a confirmed false breakout as taught in today's lesson?
Understand the Problem
The question is asking whether the specific candle marked by a red arrow can be considered a confirmed false breakout based on a range high indicated by a red horizontal line, relating to a lesson learned earlier.
Answer
Yes, if the candle closes below the range high after briefly exceeding it.
Based on typical characteristics of a false breakout, if the candle marked by the red arrow closes below the range high after briefly exceeding it, then it could be considered a confirmed false breakout.
Answer for screen readers
Based on typical characteristics of a false breakout, if the candle marked by the red arrow closes below the range high after briefly exceeding it, then it could be considered a confirmed false breakout.
More Information
False breakouts often occur when a price moves past a key level but fails to maintain that level, quickly reversing direction.
Tips
A common mistake is assuming any penetration of resistance is a breakout; confirmation often requires a closing price beyond the level.
Sources
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