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When a stock breaks a support level, old support becomes new resistance.
In the majority of our trades, the stock will test the level it has broken after the first couple of
days.
Watch breakout.
Watch breakout.
These are usually the traders who are too risk-averse and therefore get stopped out
prematurely before a larger move ever gets going.
Of course, there are also those who trade the lower time frames and therefore aren’t
looking for the larger opportunity. These traders are completely happy to take their
profits early and often.
Resistance become Support
Horizontal
HH,HL and LH,LL
And Finally……..
Why Do Trading Strategies Work?
Trading strategies work because they manage to identify recurrent market
behavior.
Recurrent patterns could be almost anything, but are most times based on
technical analysis.