In this picture we seen that one trendline acted two times as resistance after that resistance trendline breakout and made it as support level. After a few moment (Depend on timeframe) that support breakout and price sharply gone to down.
Here 1 is pointed for 1st resistance point,2 is another resistance point.
3 is breakout area where price act as bullish movement. After that it comeback to down and breakdown and acted as a support area.
For this kind of trading we need another confirmation like candlestick pattern or MACD confirmation.
Above this Picture it is uptrend market with a clear trend line.
Creating 3 consecutive Higher low point that indicates three support point for this price movement.
Three Higher low 1 ,2 and 3 is verified support point.
Point number 4 indicate the breakout of the market and that line is the new resistance line.
This kind of conversion we called turncoated Resistance line.
In the point of 5 indicate the retest of the resistance level and confirmed for short entry.
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