Hello TradingView community, friends, and fellow traders.
I hope everyone is doing well with patience and clarity. Sharing a fresh price action observation on Nifty that clearly shows one of the most important concepts every trader should understand how the market behaves after a breakout.
On this chart, price had been facing repeated rejection from the same area, showing that it was a strong resistance zone. Sellers were clearly active at that level and price struggled to move higher. When price finally broke above this level with strength, it was the first sign that buyers were starting to take control.
What makes this setup valuable is not just the breakout itself, but what happened next. Instead of continuing straight upward, price came back to test the same area from above. This is the moment where most traders get confused, and many exit early or panic. In reality, this retest is the market checking whether the breakout was genuine or not.
When the old resistance starts acting as a support, it confirms something very important the market has accepted a new price range. This shift is known as role reversal, where selling pressure is replaced by buying interest. It also shows that buyers are now willing to defend the same level that sellers once controlled.
This is why breakouts should not be chased blindly. A breakout without confirmation often leads to false signals, but a breakout followed by a successful retest builds trust in the structure. The retest gives traders a chance to see whether the level holds and whether the trend is likely to continue.
As long as price remains above this support zone, the bias stays positive and the trend favors buyers. If price starts closing below this level, it would indicate weakness and failure of structure. The chart always gives clarity we just need to read it without emotion.
The biggest lesson here is patience. Markets reward those who wait for confirmation, not those who rush for entries. Breakout shows intention, but retest shows strength.
I hope this idea helps you see structure more clearly and trade with more confidence. Always remember, price action is not random. It tells a story, and every level has meaning if you know how to read it.
Wishing you all clarity, discipline, and consistency in your trading journey.
Trade safe and stay focused.
Regards- Amit.
I hope everyone is doing well with patience and clarity. Sharing a fresh price action observation on Nifty that clearly shows one of the most important concepts every trader should understand how the market behaves after a breakout.
On this chart, price had been facing repeated rejection from the same area, showing that it was a strong resistance zone. Sellers were clearly active at that level and price struggled to move higher. When price finally broke above this level with strength, it was the first sign that buyers were starting to take control.
What makes this setup valuable is not just the breakout itself, but what happened next. Instead of continuing straight upward, price came back to test the same area from above. This is the moment where most traders get confused, and many exit early or panic. In reality, this retest is the market checking whether the breakout was genuine or not.
When the old resistance starts acting as a support, it confirms something very important the market has accepted a new price range. This shift is known as role reversal, where selling pressure is replaced by buying interest. It also shows that buyers are now willing to defend the same level that sellers once controlled.
This is why breakouts should not be chased blindly. A breakout without confirmation often leads to false signals, but a breakout followed by a successful retest builds trust in the structure. The retest gives traders a chance to see whether the level holds and whether the trend is likely to continue.
As long as price remains above this support zone, the bias stays positive and the trend favors buyers. If price starts closing below this level, it would indicate weakness and failure of structure. The chart always gives clarity we just need to read it without emotion.
The biggest lesson here is patience. Markets reward those who wait for confirmation, not those who rush for entries. Breakout shows intention, but retest shows strength.
I hope this idea helps you see structure more clearly and trade with more confidence. Always remember, price action is not random. It tells a story, and every level has meaning if you know how to read it.
Wishing you all clarity, discipline, and consistency in your trading journey.
Trade safe and stay focused.
Regards- Amit.
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Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.