Breakdown in Forex

A breakdown occurs when price moves below a meaningful support level, range floor, trend boundary, or pattern boundary and the move is accepted rather than immediately rejected.

What Counts as a Breakdown

A wick below support is only a probe. A more defensible breakdown usually includes a candle body close below the level and, ideally, follow-through or a retest that fails to recover the old support. The exact threshold depends on the chart and timeframe, but the key idea is acceptance below the boundary.

Breakdown vs. Fakeout

A breakdown can fail. If price moves below a level but quickly closes back above it, the move may be a fakeout or liquidity sweep rather than a confirmed structural break. This is why Level 3 places more weight on the close and subsequent behaviour than on the first wick through a line.

Role Flip

After a genuine support break, the old support area may later act as resistance on a retest. That role flip is evidence to observe, not a guarantee that price must continue lower.

Key Takeaway

A breakdown is a confirmed move below support or another lower boundary. Look for body-close acceptance and follow-through rather than treating every wick as a break.