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Break of Structure

Break of StructureLesson 6 of 75 min read

Not a break

A wick past the level is not a break, a candle still forming is not one either, and the fake version has a name.

Price goes past a level far more often than it closes past it. Those two things look the same in the moment.

A wick past the level means nothing

The wick shows how far price travelled. The close shows where it ended. Only the close is the test.

Figure 1 · A gold uptrend with the level at 2,420, a candle whose wick reaches 2,414 but whose body closes at 2,426, labelled not a break, and price continuing up afterwards

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