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Break Below/Above Question

  • Post #1
  • Quote
  • First Post: Jul 19, 2007 7:02pm Jul 19, 2007 7:02pm
I did not receive an answer to this question in the Beginners' forum - possibly someone will answer
here.

When an analyst speaks of a break below or a break above a certain number, does the "break" refer to the price just "moving through" that number and possibly moving back from the direction it came, or does it refer to the day's "close" being above or below that number?

Thanks
Quoting winterwhite
I did not receive an answer to this question in the Beginners' forum - possibly someone will answer
here.

When an analyst speaks of a break below or a break above a certain number, does the "break" refer to the price just "moving through" that number and possibly moving back from the direction it came, or does it refer to the day's "close" being above or below that number?

Thanks

usually when they speak of a break it is simply pricing moving through that point. But depending on how it is worded or the so-called analyst, a break may mean a close above the price on a certain timeframe.

But for the most times it is just a breach of the price .

Bes,t
Mike
SEE edited post next
Quoting mbqb11
usually when they speak of a break it is simply pricing moving through that point. But depending on how it is worded or the so-called analyst, a break may mean a close above the price on a certain timeframe.

But for the most times it is just a breach of the price .

Bes,t
Mike

Mike:

Thank you.

In reading the Euro/USD analysis early today here:

http://www.forexfactory.com/showthread.php?t=39139

QUOTE:

"until we see a break above 1.3810/30 one can't be sure about the trend continuation,
if price does break the above mentioned resistance the next bullish target might be the 1.3900"

END OF QUOTE


The Euro had already gone higher than 1.3830, I therefore
could not understand why he posted that "a break above
1.3810/30" was required to take the bull trend
higher. I have noted such many times and thought
that the "break" must refer to a higher/lower "close" at the
end of the day.
  • Post #5
  • Quote
  • Last Post: Jul 19, 2007 8:36pm Jul 19, 2007 8:36pm
Quoting winterwhite
Mike:

Thank you.

In reading the Euro/USD analysis early today here:

http://www.forexfactory.com/showthread.php?t=39139

The Euro had already gone higher than 1.3830, I therefore
could not understand why he posted that "a break above
1.3810/30" was required to take the bull trend
higher. I have noted such many times and thought
that the "break" must refer to a close higher/lower than
the stated number.
well i didn't read that whole post but from your excerpt the person was saying how there is resistance at 10/30 area. Once this "area" breaks, the bulls should resume. Again a break is kind of a loose term here. Just case euro goes to 1.3831, doesn't mean it's going to keep going. These are areas to keep an eye on. Some may choose to wait for a close above this resistance, or playing a pure break.

hope that helps,
mike
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