Why does when a resistance get broken it becomes a new support ? I see people open trades below and above these levels , which is quite common. But what is the reason?
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Why does when a resistance get broken it becomes a new support ? I see people open trades below and above these levels , which is quite common. But what is the reason?
Try to understand the movement, don't waste the time support and resistance. Use zigzag indicator to analyze in seconds. Support and resistance is not the hard term, and there is no restrictions that we should have to use support and resistance.
This is very basic theory of forex trading..
If any currency pair crosses any particular support or resistance, then it will automatically become its opposite..
For example, support value will become resistance value and resistance value will become support value
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.
Yeah agree with what you said. market sentiment is the factor that is making us to see the effect of support and resistance holding or breaking. we know lots of traders are watching the support and resistance level closely thats why they tend to hold most of the time and break occasionally