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Technicals

Three Percent Rule

When determining the validity of a breakout or breakdown, it is common practice to use the 3% rule. This means that the price should move at least 3% above or below the designated level in order for the move to be considered valid. This is an important guideline to keep in mind when analyzing market trends and making strategic financial decisions. By following this rule, we can better assess the strength and potential impact of market shifts.
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