Lesson #4

Identification Of Support/Resistance getting weak?

When you find out the the level is acting as a Support/Resistance you must see that the market respect that levels and bounce back

In Historical Data you see that level as a good Support/Resistance , So you have to Identify its weakness on the behaves of Bounce back , If the bounce back getting weaker and weaker indication of its weak

Lets ask a Question to yourself:

if this support level were so good why are the bouncers so weak and why does the market keep coming back to it

Same thing Applies For the Resistance Level

if its getting weaker and weaker you will see a Breakout - downward if support getting weak and upward if resistance getting weak

So more Test in the same direction = Weaker the Level [Support/Resistance]

E.G:

As you see in the below example Bounces getting weaker and weaker at support so we are seeing a Breakout