Once a trendline support or resistance is broken, its role is reversed. If the price falls below a support line, that line will become resistance.
If the price rises above a resistance line, it will often become support. As the price moves past a line of support or resistance, it is considered that supply and demand have shifted, causing the breached line to reverse its role.
For a true reversal to occur, however, it is important that the prices make a strong move through either the support or resistance line.
[…] in a similar fashion. These two chart patterns are formed when the price movement tests a level of support or resistance three times and is unable to break […]