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SUPPORT AND RESISTANCE ???

One of the biggest misconceptions among-st traders and especially among-st beginners is

Support and Resistance.

Many new traders believe that when the market reaches the support level that prices will bounce up and when the market reaches the resistance level that the prices will bounce back. That is of course true during sideways markets. During a trending market, prices will persistently move in the direction of the prevailing trend breaching any obstacle in the way. Think of the trending market as a tsunami that takes with it every piece of debris - the force is extremely strong. In an uptrend especially, prices will break through all resistance levels until a reversal occurs. On the way down, in the course of a downtrend, prices will violate all support levels until a reversal occurs in the opposite direction. This is the truth about support and resistance. Successful traders know that.