support becoming a resistance and also resistance becoming
support.
Here is how to spot it and how to trade it:
1. To identify this setup, you first need to see the price strongly reacting or jumping away
from some area in the chart. This strong reaction indicates that there was strong
support or resistance in the area.
2. One big reaction is enough but two or more strong reactions are even better. This way
you can be sure there was a really strong support or resistance area.
3. After spotting such a strong area, you need to wait for the price to go past it. You want
to see this strong support or resistance breached.
4. Even though the support/resistance was breached, it is still significant and strong. The
reason is that breaching such a level requires a lot of effort and volumes of strong
buyers or sellers. This area will be "defended" again. This is how support becomes
resistance and how resistance becomes support.
5. When you identify support becoming resistance (or resistance becoming support)
level, you wait for the price to come back to this area and enter your trade from there.
6. This setup works for all timeframes