Why does resistance become support in a trade?

Abattia,


You have the general overview..., but you’re overlooking the most important, and influential piece


The buyers

Market has a built in bias

Buyers always have the upper hand over the sellers (shorts)



Resistance is created when price is thought to be too high, by the buyers, and buying is removed (then the weak buyers become sellers, while the shorts also step in)


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Resistance and support areas are created – where inventory is being transferred – either from…, or to…, the weak hands…

Or accumulated by the buyers (strong hands) in preperation for the next move up.

It is also why - when price falls, it falls ~2 1/2 times faster than it rises - no support (buying)


That’s the readers digest version, but if you think through it a bit the dots will start connecting.

RN

 

Thanks.

 

It`s a kind of ma-a-a-agi-i-i-ic