Please some help to clear this out :S Question: Can the support in the left red box count as a resistance in the right red box as in the picture ? If so.. Is the resistance above in the left side also a resistance above on the right side ? If not: What is the left red box ?
I'll take a stab at it but first you have to provide which stock symbol or whatever market + timeframe that is to take a better look.
really apreciate it. The chart is from the 10 th december 2017 to 15 th december 2020, of Ethereum/USD (Daily chart)
Ok here is what I see (sliced into two charts otherwise everything would be too scrunched up to gain much from it) in first chart key bars to look for future resistance when price returns there, and then second chart showing the result. Note I don't normally draw lines from bar highs - just the opening price or a prior close if there is a gap up or down. Candlebodies are the priority and less a focus are the wicks. But as to your question, absolutely prior resistance flipped around can become support and vice versa. And did in your chart. Prior support did become resistance because price in the future is coming from underneath that old support level; and prior resistance becomes support once price moves above and then returns back down to it. HTH
I see, really useful and interesting information to digest. Think I get it, really appreciate it. So if I understand and get it right, both the peaks and the troughs can be read as either support or resistance, depending on, if the price comes from below or from above.
Yes. But candlebodies and where they are located within the price structure matter most IMO. As one example look at that long red down candle in the center of bottom chart pic (about Jan 20th?) it took 12 days trading before price was able to clear and move above that bearish day - if you ignore wicks of the 2 days which traded intraday above but then closed back below the big red candle's high. I do the same on intraday timeframes. Open to close matters most.