lowtrade

[lowtrade]

Support/Resistance

Forgot one portion of your question, about ARNA in my last posted chart. I did put it in my chart, but didn't clarify my thoughts about the subject.

As you can see when a support or resistance point is broken, it changes it's role.

Without a pattern to be relayed on, this main support/resistance point normally holds, and is pretty good until a chart pattern shows up to challenge it.

Thats why when trading a move without a pattern I choose resistance as a target. It usually holds. If not broken on the moves emotion the first time. You will probably see a stall channel and consolidation, while retail decides what they really think.

At any rate resistance points reached, without chart patterns, are a sidelines move for me.