What is the breakdown of resistance levels?

What is the breakdown of resistance levels?
Many training courses, when considering methods of price movements relative to the prevailing trend of corridors, often overlooked the fact that the price is able to breakdown their false and do not always act according to the standard schemes, the approaches of repulsion or passage confirmation.
Therefore, if a trader is going to be used in trade folding resistance and support levels, he just need to know how to weed out the false breakdowns, to maintain its capital market.
How it looks in reality
In practice, the price of rare that similar levels of compliance. When you approach them, or she slows down and does not reach the threshold level, as the opposite movement begins, or rapidly overcome it on a couple of points, and then again rolled back to the previous course.
How to set a stop-loss at a false breakdown
To exhibit at the wrong breakdown of the Stop Loss level is better in the area of ​​10-20 pips. Of course determine the length should be based on the strategy used. However, the meaning of this breakdown by itself implies the rapid skipping existing fractal. If it does not, and the price on the approaches to the exposed edge begins to "fade out", then we can assume that it is not strong enough to overcome the barrier is exposed without additional fundamental factors.
Therefore, if the breakdown of the transaction took place, after which the price reversed, you should not hard to expect a change in market direction. Such an order does not bring much good because of the falsity of the breakdown. As a result, the stop-loss at a distance of no more than 20 n. Is fully justified.
If the sample to be valid, then we adjust the open position and the ability to translate Stop Loss to breakeven line. Minimization of losses and earnings capacity a priority for us in every situation. Do not forget about it.
What it does
In another way, we can say that making a deal with a reference to "punch" levels, it quickly becomes clear to where the price will go. After all, not in this case there are two options:
Either rapidly move towards an open transaction and close it by Take Profit;
Or it is not able, as it should, to pass the price threshold, but only push beside him, and then go in the opposite direction. Here come to the aid of short stops.
AND…
Do not forget to recommended ratio of 3: 1 TP and SL. As well as the above precautions and learn to apply this protection against false breakouts to reality.