What is Role Reversal?

  • 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.

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