Breakdown
When price falls through a support level or the bottom of a pattern, often bringing more selling.
In plain English
When price falls through a support level or the bottom of a pattern, often bringing more selling.
A breakdown is the floor giving way. Price had been bouncing off support, then it smashes through and keeps going. Stops below the level get hit, new sellers jump in, and the fall can feed on itself.
It is the downside version of a breakout. Not every breakdown sticks; some snap back as a bear trap.
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