Why does previous support become resistance and vice versa?

[rubel1]

I think that it is true what you say that the wax can give us an idea how the emotional state of the buyer and seller this can be easier to provide assistance to our analysis. Thanks........

[Chelsea91]

most many big traders and banks use these levels in trading, they make their orders above and below these levels so when it is broken they set sell just below it so they change it to resistance level and vice versa, this makes these levels swaying from time to time

[sind]

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.

I think the price movement is not restrained by the rules of support and resistance. The general accepted rule is the price is the coorect reflection of the demand and supply at the particular time after discounting all the available news at the time. At best support and resistances can be used for the analysis and employ proper stoplosses

[enter]

the market is also make the changing day by day , so of course that the support can being the resistance too, i think maybe that is normal when the support is being the resistance on the forex busness we need to calculate it to know that wheer is the support and resistance

[pakhi_pk]

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.This is very basic theory of forex trading.

[infoworld]

It is because either the bull are fully in control of the market when resistance becomes support or when support becomes resistance when the bear are fully in control of the market, it is just a technical analysis way of understanding how the market is going

[shanawaj]

I think forex is a good job could be because however many parties who have an interest in the forex sector include large investors and governments to maintain their currency exchange rate thanks.....................

[kameeelforex]

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?

yar ye to methimaticaly question ha app khud he socho k jab koi value down hoti ha to us ki waja se woh jo support hoti ha woh up ho k resistnce ban jati ha or isi taran jo resistence ha woh supports ban jati ho gi main to yahi samaghta houn mugh ko to to yahi samgh ai ha ab tak

[abu yousuf]

I agree with you and when the winner is the buyer will be able to suppress or sign in resistant whereas if the winner is the seller is able to penetrate the support .where they are clashing power to control prices .

[blonur]

I think it is because this ideology has been passed from one generation to the other.

If you are travelling and you suddenly see a road sign with the caption

SLOW DOWN, DANGER AHEAD

There is this naturally tendency for you to apply your brakes not because you have seen any danger but because you have been warned about a probable danger.

If every Pro passes the concept to the next set of newbies that when support is breached it becomes resistance and when resistance is breached it be comes support. These newbies which would be pro someday will also pass this principle to the next generation so that at such points. We all tend to react to resistance and support.

That is the psychological part of the market i guess, where we all think this is what is going to happen and react to such points they way we do.

JUST TO DRIVE HOME MY POINT

The use of pivots, fibs, psychological prices like 1.000 etc have been known to act as resistance/support points because of the large number of traders that use it in the market.