#support converting into
#resistance
a live example
what dos SUPPORT TURNING TO RESISTANCE MEANS
WHEN THE STOCK IN THE GIVE CHART BELOW WAS IN UPTREND , TAKING SUPPORT AT THE UP TRNED LINE AND MOVING UP , AT A GIVEN POINT OF TIME THE STOCK CAME BACK TO TRENDLINE AND STARTED MAKING A BASE , WHICH WAS NO DIFFERNT THEN THE PREVIOUS RALLY TAKING SUPPORT AND MOVING UP.
THE DIFFERNCE HERE IS , THE STOCK MOMENTU IS LOST AND IT BREAK THE TRENDONE AND FALLS DOWN , WHICH WAS THE FIRST INDICATION OF THE
#TREND CHANGE , BUT YET NOT CONFRMED .
THE STOCK BROKE THE TREND LINE , IT WVEN BROKE THE BASE THAT IT CREATED NEAR THE SUPPORT TREND LINE , AND IT FAILED TO GO BACK IN THE PREVIOUS TREND.
SO THE BASE = SUPPORT AS MARKETED IN THE CHART , THE PRICE WENT BACK TO RENTEST , WHERE FEW TRADERS TRIED TO PULL THE STOCK UP , BUT DID NOT HAVE ANY SUCCESS AND THE SELLERS TOOK OVER AND THATS HOW THE SUPPORT CONVERTED TO RESISTANCE .
HOPE YOU GOT THE LOGIC AND THE MIND SET BEHIND THE SETUP WHERE SUPPORT TURNS TO RESISTANCE .
FOR MORE ADVANCE STRATEGY , YOU ALWAYS READ MY BOOK , WHICH EVERYTHING A
#TRADER NEEDS .
LINK :
amzn.to/47NnwXK
#TRADING #CHARTPATTERN #TRENDPATTERN #NIFTY #RALLY #BullMarket