1- Those levels are strong support and resistance levels on short term , the market usually respects those levels strongly.
2- If the market rallies into resistance levels (R1, R2), a sell-off is expected.(Downward Trend- Recovery Mode).
3- If the market rallies above (R2) ; R1 is likely to serve as support, Target R3 (Upward Trend- Bullish Breakout).
4- If the market sells-off into support levels (S1, S2) , a rally up is expected.(Upward Trend- Pullback Mode).
5- If the market sells-off below (S2) ; S1 is likely to serve as resistance , Target S3 (Downward Trend- Bearish Breakout).
6-I highly recommend using divergences techniques, to find possible turning points during the week!
7- Breakout strategies usually work above R2 and below S2.
8- Recommended time frame , Daily and below.
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