Supply and Demand Flips

A zone doesn’t have to stay what it was. A supply zone that finally gives way, that price pushes cleanly through instead of turning at, doesn’t just disappear off the chart, it often flips and starts acting as demand the next time price returns to it. The reverse is just as common, an old demand zone that breaks becomes resistance on the retest. This role reversal is one of the more useful things to watch for once you’ve got the basic zones down. ...

3 min · Clear Head Trading
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