Hey guys,
so I have been recently brushing up my technical analysis skills and I have come across the following:
But also…
I feel these views are somewhat conflicting.
Interested in your opinions!
Cheers
Yeah so a SP has resistance and support.
When the price tests the resistance and breakouts to the upside it then flips to become a level of support.
If the price comes back down to test that support it will either bounce or break it.
If it bounces and the price goes back up again the support is weaker. If it then comes back down to re-test it’ll be weaker still.
If support breaks and no buyers stepping up then it flips into becoming resistance.
The same with tapping resistance points the more times it’s tapped the weaker it gets, and finally sellers give up, and the price breaks out.
If you have multiple historical points it will offer stronger support or resistance.
It’s why if the price shoots up too fast then it’ll likely pullback to fill a gap. If it hasn’t established any points then it’s likely a full retrace will happen.
Here’s a recent video about BTC which might help where he highlights support and resistance points. Worth watching previous videos for learning. This one is very much 
because it’s so choppy atm so not the best 
but interesting if you’re in crypto.
