Why does previous support become resistance and vice versa?

[Mehak]

support and resistant level kabhi dhoka detay hain...so always see the trend line or see the movement of chart using moving everage and bollinger bands...

[forexprophet]

A prior resistance level will often be a point of interest on many technical analysis charts (e.g. a prior swing high, or a prior channel top, a break out level, etc). Once resistance is broken through, many traders will place entry or exit buy limit orders just in front of/ at / just below the same levels in expectation of the same prices again being significant in some way going forward. These buy limit orders will provide support to a falling price.

[aadrika]

Previous support can become resistance if there is a strong trend reversal. At this point, when price breaks the support level, traders are quite sure that it will not be able to rise again based on trend analysis so they take out their trades when price gets near the previous support level. It is a case of simple price action.

[shinde]

It is actually theory that previous resistance becomes support after break of that resistance. Traders following the technicals are always trade you that here is strong resistance and support. The meaning of strong is that if that will break that strong resistance then it will be strong support as we are now above that resistance line.

[shinde]

It is the tendency of the traders to look at that levels and try to take position if the break of the resistance or the support occurs then that may becomes support or resistance respectively. So always track that levels so that you will get good profits from your trades.

[furiya]

huh, everybody was talking about candlelistik,
but I prefer to use candles heiken ashi.
is there any trader who uses candles heiken?

[nikam]

it is done is because every day snr line position change with the movement of prices.
if you do not do an analysis every day, the possibility of a pending order or a TP that you attach is not reached.

[nikam]

of course, snr line/area not only be used as a reference to an entry position, but also as a reference to an exit position.
we can get the maximum profit if we are adept at using it.

[furiya]

I do not think to look at the power of buyers and sellers,
but to see the habits of buyers and sellers,
where the seller took off the price or where the buyer will usually purchase price.

[nikam]

to my knowledge it is happening because of the habit of traders,
but that makes me confused, currency prices are not only influenced by traders..

may be more appropriate if it is because the habits of the market.