Trade prerequisite
A trade prerequisite is a condition around a level that makes one outcome, a breakout or a bounce, more probable than the other. It raises the probability; it never makes the outcome certain.
Examples: a squeeze to the level and a near retest favour a breakout; a spent daily ATR, an open more than half an ATR away from the level and an approach on big candles favour a bounce. On 2 October 2026 Bitcoin opened about one ATR below its 87,385.1 level, rose to 87,249.6 and closed back at 84,483.
Learn more: pillar three, direction, with a full module for each style: breakouts, bounces, false breakouts.