Sometime we miss the forest for the trees by focusing on the smaller timeframes. Zooming out a chart will enable us to pin point the crucial support and resistance levels and see how the role reversal concept plays out perfectly according to the textbook.
That is to say, once a support level broken decisively, it reverses it's role and becomes a resistance level and vice-versa. The most recently support or resistance level which has been formed will exert more influence on the next market move.
The below BIG picture of the daily chart is worth a thousand words...
That is to say, once a support level broken decisively, it reverses it's role and becomes a resistance level and vice-versa. The most recently support or resistance level which has been formed will exert more influence on the next market move.
The below BIG picture of the daily chart is worth a thousand words...
0 comments:
Post a Comment
You are welcome to post comments. However, please do not use Anonymous as your ID. At least, put in your initials for easy reference in further conversations.