Why does previous support become resistance and vice versa?

[bdihman]

Proactive support and resistance methods are 'predictive' in that they often outline areas where price has not actually been. They are based upon current price action that through analysis has been shown to be predictive of future price action. Proactive support and resistance methods include Measured Moves, Swing Ratio Projection/Confluence (Static (Square of Nine), Dynamic (Fibonacci)), Calculated Pivots, Volatility Based, Trendlines and Moving averages, VWAP, Market Profile (VAH, VAL and POC).

Reactive support and resistance are the opposite: they are formed directly as a result of price action or volume behaviour. They include Volume Profile, Price Swing lows/highs, Initial Balance, Open Gaps, certain Candle Patterns (e.g. Engulfing, Tweezers) and OHLC.

A price histogram is useful in showing at what price a market has spent more relative time. Psychological levels near round numbers often serve as support and resistance. More recently, volatility has been used to calculate potential support and resistance.

Both proactive and reactive support and resistance methods have merit and form a staple part of any support and resistance based trading strategy.

[shipon2]

Support and resistance is not the hard term, and there is no restrictions that we should have to use support and resistance. If any currency pair crosses any particular support or resistance, then it will automatically become its opposite.. currency prices are not only influenced by traders.. I see people open trades below and above these levels..

[Belal87]

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

[matin6767]

Just be sure to recognize your action, never debris that period advice coupled with amount of resistance. Access zigzag warning into dissect extremely fast. Enable while push back is not an solid session, also right now there is simply not any rules the fact that we tend to would wish to utilize company and even training.

[seeker]

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.

[agitiga]

When traders meet a support zone, the area is usually difficult to penetrate, and when it is penetrated it becomes yet another difficult area whenever there is a trend reversal. The reason could be the action of profit taking

[shimul]

Yes I think support and resistant depends on traders mind.It depends upon seller's and buyer's mind.

[onil]

Whatever methodology you use and think to be correct, I am sure that someone ... GLD found support and the previous resistance spot (which I ...Support does not always hold and a break below support signals that the ... Support can be established with the previous reaction lows. ... Another principle of technical analysis stipulates that support can turn into resistance and vice versa.Trading requires reference points (support and resistance), which are used to ... That is, the previous day's prices are used to calculate the pivot point for the current .... target would be S1 � former support becomes resistance and vice versa).

[Anis]

because with it we can know the effort that has happened to us so we can correct our mistakes and can fix it
because it was not easy to quickly understand we can and in analyzing the forex market,
because it all takes time and personal experience as a teacher

[shipon2]

Support and resistance is not the hard term, and there is no restrictions that we should have to use support and resistance. If any currency pair crosses any particular support or resistance, then it will automatically become its opposite. currency prices are not only influenced by traders.. market sentiment is the factor that is making us to see the effect of support and resistance holding or breaking.