Levels and zones
Do levels break after two or three tests?
A common rule says a level usually breaks after two or three tests. No source for it was found.
No traceable source
Repeated in many places and sourced in none.
Stated as personal observation in books; no study found.
What it is
The idea is that repeated tests use up the orders defending the level.
What it suggests
It is plausible and it is testable, which is better than plausible alone.
How to check it
Count touches when marking a level, and record what happens on later touches in the journal.
Common mistakes
- Treating the rule as established.
How we will test it
On public price history, never on anyone's account. Until it is done, the note above is all we can honestly say.
- Cases: the nth touch of a swing zone
- Measure: share that break by touch number, per market
- Window: next 20 bars
- Compared with: first touches
Related lessons
Written in our own words. Education only, not financial advice.