Support and resistance levelsAt these levels, changing the distribution of buyers and sellers, as the price dictates the supply and demand ratio. Recall the law:
"If the desire and ability to buy exceeds the supply in the market, the price increases. In the reverse situation, when the sentence above demand, the price will go down. "
Does not really react to price support and resistance levels, and traders. The big players just concentrated on them their orders, waiting for the price breaks the next frontier. In this case, the levels are reversed.
If one day the majority of the big players decide to urgently close a deal to buy and start selling, the market will fall sharply. Thus, it becomes clear that these levels do not affect the situation in the market, but rather demonstrate the balance of power.
Next we will focus on the false breakouts and rebound.
Sooner or later, the market is changing. Price, pausing in the channel, …