When trading, how do people judge the breakthrough or breakdown of key price levels?
Let me share my method:
1. Temporary breakthrough\breakdown: The current real-time price crosses the key price level, but the candlestick has not closed;
2. Breakthrough\breakdown: The closing price of the candlestick is only one that crosses 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 vague the judgment criteria tend to be, for example, only stopping loss when the daily or weekly candlestick confirms a breakdown;
Conversely, the higher the leverage and the shorter the trade, the more immediate judgment criteria should be adopted. Did the pin bar cause a loss? That is also a trading cost that must be borne, and it should be regarded as a reasonable loss;
Lastly, I generally recommend choosing a vaguely correct right-side logic (leaning towards 3) when entering the market, while when exiting and stopping loss, try to choose an immediate left-side logic (leaning towards 1);
I wonder how you judge it?