Why does previous support become resistance and vice versa?

[dead]

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.

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

[alwi]

I think the support and resistance is a reflection of the strength of the sellers and buyers
where they are clashing power to control prices

yeah 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

[pinpin]

Why does previous support become resistance and vice versa?

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?

I think the support and resistance is a reflection of the strength of the sellers and buyers
where they are clashing power to control prices

[pinpin]

Why does previous support become resistance and vice versa?

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?

I think the support and resistance is a reflection of the strength of the sellers and buyers
where they are clashing power to control prices

[mayengbam]

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

[arjun]

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.

[anubhavsingh]

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

[venkiaries61]

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.

[soumen]

generally the previous support becomes the resistance in a trend, but its not always the case. it may break the previous support again

Yes I totally agree with you. pichle support ko break kar sakta he . aur aap ko trend dekh kar enter karna chahiye is samay. par jyadatar samay ye aisa hi kam karte he.

[pivot-trader]

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?