Why does previous support become resistance and vice versa?

[BaHaaFxTr]

Well , that's good question to ask , that's true the support after break up become a resistance and the opposite and that's for a reason that price which was support and all traders want buy from it and they do that already but when it break down for some reason and the price continue going down the traders wait until to get their money back and the price come back up again and get their money and when they get back their money they start to sell what they bought before so the price come down again and that zone become a resistance.

[yogesh]

Well i dont talk about pivot points, but i do believe there are support and resistance levels and most of the time price go near these levels it is send back as a swing, that is simply because there are lot of buyers or sellors at these levels.

[waqar arif]

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?

yea that is because forex is a funny kind of market the support and resistance levels are just guidance for us nothing more they only workds 70 % off the time if they dont you would say to your self that perhaps you were unlucky!!

[nsr.sultana]

Heiken Ashi candlesticks are actually an indication and not a kind of data. You need to how analyzed the actual principles of the Heiken Ashi signal before you will be able to benefit from it. Do not think that Heiken Ashi is a kind of data like Range, Bar and Candlesticks data.

[sourav744]

That is, the previous day's prices are used to calculate the pivot point for the current trading day. .... In this case, former resistance becomes support and vice versa. ... target would be S1 � former support becomes resistance and vice versa).

[mariaarsalan]

han mere khyal say support or resistance ek reflection hai jis main buyer or seeler ki takat unko clasing of power ko controll krwaye

[tom11]

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.good luck............

[Chelsea91]

because most of the big traders and banks set pending positions on these levels and their stop loss is few pips below it and make another pending order from the other side of the support or resistance level, so once stop loss is hit for the first position the other position is triggered in the opposite side and this makes the support becomes resistance

[rekoo]

Indeed it's a very important question and was going on in my head for some time .. but I do not know specifically answering
I think the reason that after breaking the resistance is likely to become the support and Lech need a very strong resistance that is at most times becomes support and vice versa, but not all resistors and all subsidies

[rubel3]

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.good luck..............