1. What is the mirror level? To answer this question, we should remember the general meaning of support and resistance. Support represents the situation in which the price constantly goes down, then reaches a certain price point, and ceases to decline. Resistance shows just the opposite situation: the price constantly rises, then reaches a certain price level and, suddenly, ceases to rise.
2. What is the Historical Level? If the price dropped dramatically and after some time approaching that level again we have a huge possibility for the repeat. It can be a all-time high or all-time low. It doesn't matter. I see a price reaction near such levels almost every time when the pair approach it.
3. What is False breakout? False-breakouts are exactly what they sound like: a breakout that failed to continue beyond a level, resulting in a ‘false’ breakout of that level. A false-break of a level can be thought of as a ‘deception’ by the market because it looks like price will breakout but then it quickly reverses, deceiving all those who took the ‘bait’ of the breakout. It’s often the case that amateurs will enter what looks like an ‘obvious’ breakout and then the professionals will push the market back the other way false breakout is essentially a ‘contrarian’ move in the market that ‘flushes’ out those traders who may have entered on emotion, rather than logic and forward thinking.
4. What is squeezing? When a large number of traders are forced out of their positions due to sudden rising or falling prices, it is known as a market squeeze. Some high-volume markets are more susceptible to squeezes than others, but the general assumption is that it can happen in any market at any time.
Market squeezes can be either long or short. In this example, we’ll look at long squeez.
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