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Now, if the price of an asset does not break the level of support and resistance, you can conclude that the price is testing the level. However, if the price manages to break the level, this indicates a breakout in the trading market.

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If the price is above 200-period moving average (MA), then look for long setups when Stochastic is oversold If the price is below 200-period moving average (MA), then look for short setups when Stochastic is overbought.

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