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Re: Intrinsic Reasons for Support and Resistance changing roles
The reason is that bad traders (i.e. most traders) like to get out of their bad trades at break even. So traders who sold at resistance only to see the price rise and go against them will buy as soon the price comes back to where they sold. As the bad traders buy to close their bad positions, this creates support where the resistance was. On top of this, good traders understand what's happening and know that the previous resistance will provide support so they buy at that level too.
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