The power of flipzone

Whatever you call them, "flipzones" are must-have levels on your charts.

They show current highs and lows which go from being support to becoming resistance on the break.

They are generally more short-term than conventional support and resistance but during rallies and reversals they act as great helpers and price barriers.

Trading flipzones requires patience and most people get in too early before the break happens and then often have to face a hard bounce against their position.