In a strong trending market like GAS currently in, support and resistance flip happens very often. Although other chart setups might not be as clean as this example, this technique can be used for all markets.
Broken Support turns into Resistance.
Broken Resistance turns into Support.
So how do we determine if a Support has been broken or not?
3 ways to view it:
- A lower low (Even if it is just a wick)
- A lower close (Candle must close below previous candle close) - Safe
- Candle close through previous low - Safest
Personally, i prefer to used the safest method to view my support and resistance. There are many nuances to trading support and resistance, try them out yourself and see what works for you! Safe trading out there!
Broken Support turns into Resistance.
Broken Resistance turns into Support.
So how do we determine if a Support has been broken or not?
3 ways to view it:
- A lower low (Even if it is just a wick)
- A lower close (Candle must close below previous candle close) - Safe
- Candle close through previous low - Safest
Personally, i prefer to used the safest method to view my support and resistance. There are many nuances to trading support and resistance, try them out yourself and see what works for you! Safe trading out there!