CADCHF - This is a tutorial of How a false break can look like.
We have broken a Major Resistance Level coming from the Daily chart but this was a false break of 45 pips this is why:
We have the highest volume bar in a regular price bar but after that we were never able to break that bar's high
Then we have their first Push Dn , High volume wave with Small Pip Move. How do we know that this is their first Push Down and not Hard to Move Down? The answer is " We do not know yet"
We get a Plutus Short Pattern that breaks the Range.
So now with these sequence of events we know that these were Sellers that caming in progressively on point 1 and 2.
... and this is called Chart Reading not RSI is above 80 or 50 ema crossed 200 ema etc.
What do you think is going to happen next?
Considering that we have a High Volume Down Wave with Linear Pip Move, let me forecast that is going to retrace back, probably to a Fib and then it will continue down. But I want to read it on chart when the time comes.
We do not have to be magicians we just have to follow.