When price breaks through a resistance level, it could potentially become...
Which answer is correct:
A: A support level
B: Insignificant
C: Price never breaks through resistance
D: A resistance level
The correct option is A i.e A support level.
When price breaks through a resistance level, it could potentially become a support level.
A support level is a level where the price tends to find support as it falls. This means that the price is more likely to "bounce" off this level rather than break through it. However, once the price has breached this level, by an amount exceeding some noise, it is likely to continue falling until meeting another support level.
A resistance level is the opposite of a support level. It is where the price tends to find resistance as it rises. Again, this means that the price is more likely to "bounce" off this level rather than break through it. However, once the price has breached this level, by an amount exceeding some noise, it is likely to continue rising until meeting another resistance level.
When price breaks through a resistance level, it could potentially become... Which answer is correct: A:...
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