A learners query...

C

Czar

Guest
#1
#1
Hi, I noticed many charts are following this pattern, can someone explain:

See the dotted trendlines, they fall certain degrees after say 1/1.5 months to a lower degree where the old line becomes the resistance line... would appreciate if someone can explain a learner please...thanks:)
 

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V

vince

Active Member
#2
#2
All stocks form their price support and resistance zones as they progress. It is these zones that provide the support and resistances which may or may not fall on a trend line.

Very often you will notice that a trend line has been breached briefly only to be followed by a nice move in the opposite direction. If you look to the left you will clearly see the existing support/ resistance zone.

Please see attached chart.
 

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