Stock price has a gap up, how to confirm it is a true break out or a false break out? Maybe a tight consolidation is a method.
Tips:
This is forex, not a stock. But the tips should apply as well.
Before the gap 2017 May, there were several times the price tried to challenge the resistance line.
Once gap up, a false break out then followed by a tight consolidation, can say the resistance became support.
After the consolidation, price broke out using a way called red three soldier.Then the second break out can be treated as buy hint.
Tips:
This is forex, not a stock. But the tips should apply as well.
Before the gap 2017 May, there were several times the price tried to challenge the resistance line.
Once gap up, a false break out then followed by a tight consolidation, can say the resistance became support.
After the consolidation, price broke out using a way called red three soldier.Then the second break out can be treated as buy hint.