Trading
Breakdown
When price breaks below a support level.
Full Definition
A breakdown occurs when price falls below an established support level, often signaling a potential continuation of the downtrend or start of a new one. Breakdowns can trigger stop losses below support and lead to accelerated selling. Traders may short breakdowns or wait for retests.
Example
EUR/USD breaks below the 1.1000 support level that held for weeks. This breakdown signals potential further downside movement.
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