How do people judge breakthroughs or breakdowns at key price levels when trading?

Let me share my method:

1. Temporary Breakthrough/Breakdown: The current real-time price crosses a key price level, but the candlestick has not closed;

2. Breakthrough/Breakdown: The closing price of the candlestick only has one crossing the key price level;

3. Confirmed Breakthrough/Breakdown: A bullish candlestick with both opening and closing prices greater than the key price level confirms a breakthrough, while a bearish candlestick with both opening and closing prices less than the key price level confirms a breakdown;

The longer the trade and the lower the leverage, the more ambiguous the judgment criteria tend to be, such as waiting for daily or weekly confirmations of a breakdown before stopping losses;

Conversely, the higher the leverage and the shorter the trade, the more immediate judgment criteria should be used. If a spike caused a loss? That is also a necessary trading cost, and should be considered a reasonable loss;

Lastly, I generally recommend choosing a vaguely correct right-side logic (leaning towards 3) when entering a trade, while when exiting and stopping losses, it is best to choose an immediate left-side logic (leaning towards 1);

I wonder how you judge it?

With six years of experience in the crypto space, I share my insights on contracts and spot trading. Feel free to click on my profile to consult; let’s improve together!