2 Trendline Myths every trader must know
Trendline Myths: Beaking a trendline doesn't always mean trend has changed. 📌 Understand false breakout/breakdown with this example in screenshot 1 where stock is making higher high and higher lows then it breaks trendline but it would be false breakout unless it closes below previous support. Stock reverses from trendline break and resumes upside and makes new high.
📌 Screenshot 2 shows that after breaking trendline and previous support or Higher low break changed Trend in stock and it started fall.
It can gap up or gap down but for option carrying last two days were less risky as market broke all time high and there was very unlikely for market to gap down with huge gap unless there was a very strong events like a war or something else.. after two gap up days.. did market participants took price up ??