{"id":4453,"date":"2023-03-14T06:59:09","date_gmt":"2023-03-14T06:59:09","guid":{"rendered":"https:\/\/fisdomdevel.wpengine.com\/glossary\/breakdown\/"},"modified":"2023-03-14T06:59:09","modified_gmt":"2023-03-14T06:59:09","slug":"breakdown","status":"publish","type":"post","link":"https:\/\/www.fisdom.com\/glossary\/breakdown\/","title":{"rendered":"Breakdown"},"content":{"rendered":"<p>\nThe term breakdown in technical analysis refers to a price move below a key support level. Support levels are price levels that a security or other financial instrument has shown a tendency to find buying interest. A breakdown occurs when the price moves below this level and that buying interest fails to hold.<\/p>\n<h2>How to interpret the breakdown?<\/h2>\n<p>Breakdowns are usually considered bearish signals. It can usually indicate a potential trend reversal. Traders can use breakdowns as an opportunity for short selling or exiting long positions in the stock or other financial instruments.<\/p>\n<h2>How to identify breakdowns?<\/h2>\n<p>Traders can identify a breakdown by looking for price levels that have been tested multiple times in the past and where the price has consistently found support. This could be a specific price level, a moving average, or another technical indicator. When the price of the asset moves below these levels, traders can view it as a signal for trend reversal. The stock or financial instrument is then likely to experience further downward price movement.<\/p>\n<h2><\/h2>\n<h2><\/h2>\n<h2><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>The term breakdown in technical analysis refers to a price move below a key support level. Support levels are price levels that a security or other financial instrument has shown a tendency to find buying interest. A breakdown occurs when the price moves below this level and that buying interest fails to hold. How to [&hellip;]<\/p>\n","protected":false},"author":67,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[16],"tags":[],"class_list":["post-4453","post","type-post","status-publish","format-standard","hentry","category-trading"],"_links":{"self":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4453","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/users\/67"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/comments?post=4453"}],"version-history":[{"count":0,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/posts\/4453\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/media?parent=4453"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/categories?post=4453"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fisdom.com\/glossary\/wp-json\/wp\/v2\/tags?post=4453"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}