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Old 11-18-2016,
alutixusini alutixusini is offline
 
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Default Resistance becoming Support doesn't make sense to me

A chart hits a level multiple times but can't break above it - that's resistance - it's saying this stock doesn't deserve to be higher than that. If the price does break above it, then it's telling me the stock is lucky to be above that level, not that that level will now act as support and should hold as a pivot point where it might not trade below anymore.
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Old 11-19-2016,
amopabila amopabila is offline
 
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Especially if the resistance before becoming support had many many hits on it - this means many times that the price shouldn't be above there and thus even more lucky for the stock to ever be traded above it, not that having so many prior hits on it as resistance now makes it an even stronger support level.
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Old 11-19-2016,
Anariel Anariel is offline
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And vice versa for Support becoming Resistance.

Please enlighten, as this makes zero sense to me.
thanks.
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Old 11-21-2016,
admin admin is offline
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It's like telling a 2 year old "don't go upstairs" "don't go upstairs" "don't go upstairs", and if they somehow make it upstairs, they're allowed to stay up there only because they were told not to so many times in the first place. The more times they were told not to go upstairs actually works in their favor to be allowed to stay upstairs.
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