One of the most important concepts in technical analysis is that of trend. A trend is really nothing more than the general direction in which a security or market is headed.
To draw an uptrend line, a technician draws a line connecting the lows of the price chart.
The price of a security seldom moves above resistance or below support.
Round numbers like 10, 20, 35, 50, 100, and 1,000 tend be important in support and resistance levels because they often represent the major psychological turning points at which many traders will make buy or sell decisions.
The change in polarity principle says that a prior resistance level, once broken, should become a new support level.
| TiredHand: Change of polarity is meaningless. Look at the chart above - a coincidence has occurred where the 'prior resistance' has become the new support. Actually what this proves is how meaningless the resistance was in the first place|
| sgossett86: lol tiredhand.|
all i can say is that i hope many sections are this easy so that i can have more time to focus on the harder sections.
|mikep91: TiredHand you're right. This is voodoo.|
|farhan92: Not really Voodoo. Voodoo works.|