In technical analysis, traders often talk about price “sustaining” above or below a threshold, “recapturing” a level, or “basing” around it.
We occassionally refer to that within our propietary tradeCompass trading methodology.
These terms describe the same underlying idea: Confirmation that the market has genuinely accepted a price zone, not just pierced it briefly. The challenge is distinguishing real commitment from temporary noise.
Several methods can help increase the probability of correctly identifying sustained moves:
Candle-Based Confirmation
Waiting for multiple candle closes above or below a level (for example, two or three consecutive 5- or 15-minute closes) can filter out false breaks.
Longer timeframes offer stronger confirmation but slower signals; shorter ones increase sensitivity but also noise.
Moving Averages and Trend Filters
Watching if short-term moving averages (like the 9- or 20-EMA) cross and hold beyond a key level can help confirm trend direction.
Sustained closes above a rising moving average, for instance, often indicate real momentum rather than a fleeting breakout.
Momentum Indicators
Tools like RSI or MACD can provide secondary confirmation. A bullish threshold break paired with an RSI above 50 or a MACD line crossing upward supports the case for continuation.
However, these are supportive tools, they should confirm structure, not dictate entries. If you are seeking support for that, you can check our if our tradeCompass publication was published for that day, or jump over to our Telegram channel where we often dish out at least 1 trade idea per trading day, on instruments ranging from futures (ES, NQ, etc, and traders on CFD platforms can also follow the futures prices and benefit from the ideas, always at their own risk, we never promise you will not lose, so the risk is entirely up to you, we do this for educational purposes so traders and investors can learn how to do it, including how and where to stop if things do not work out, which would happen about 40% of the time to even profitable traders), crypto, commodities, equities, FX and we even had bonds (rarely). Come check out another perspective to trading and investing at https://t.me/investingLiveStocks (it's free).
The Time Element
Patience plays a crucial role. Jumping in immediately after the first crossover often leads to getting trapped in short-term reversals.
How long to wait depends on market rhythm: in slower sessions, 15–30 minutes may be appropriate; in faster ones, 5–10 minutes can suffice. Some traders prefer to wait a full 45 minutes to confirm that price has truly stabilized around the level.
The Order Flow Element
Traders and investors (yes, order flow can also benefit them, they just need to use bigger timeframes) can also use order flow data to gauge market acceptance around a key level. For example, sustained buying activity (positive delta or aggressive bids lifting offers) above a bullish threshold, or steady selling pressure below a bearish one, can signal that traders are actively supporting the move rather than fading it. Order flow thus adds a layer of confirmation about commitment, whether participants truly accept the new price zone.
tradeCompass Framework Integration
Within the tradeCompass approach, thresholds serve as navigational markers, not prescriptive signals. Once price crosses a bullish threshold, traders assess whether it is sustaining above it before committing.
The stop should never extend beyond the opposite threshold. Traders can choose tighter stops or faster confirmations based on their own style, but the map remains fixed.
Risk–Reward Implications
Greater confirmation usually comes at a cost: by waiting for more evidence, entry occurs at a later stage, closer to potential targets and farther from the stop.
This reduces the nominal risk–reward ratio, but increases the probability of success, an intentional trade-off between timing and confidence.
In essence, sustained movement is about patience and context. For example, if there is a high volatility, you might just want to wait 45 minutes to let the market fake out others while you wait like a Puma for the right hunt. In other times like the open of the market, 45 minutes might be way too long to wait. Whether you use candles, moving averages, or momentum indicators, the goal is to verify that the market has genuinely accepted the new level. The longer and cleaner the acceptance, the stronger the foundation for continuation.
We never provide financial advice. You must always trade and/or invest at your own risk only. investingLive.com (formerly ForexLive.com) provides news, analysis, education and opinions for investors and traders worldwide.
