Replies to post #167 on Medved Trader user group

[Mr Nasdaq]

Resistance, when captured, becomes Support (Buy Trigger)

Hi Pinkster,

There is a principle of Support & Resistance that states, "Gathering Resistance, when captured, becomes Gathering Support".

AAPL's 5-Minute Chart demonstrates that principle in action:

1) AAPL rose to Tuesday's area of "Gathering Resistance" ($70 on the nose) and poked at it for an hour between noon and 1:00pm

2) When AAPL finally broke through that line of Resistance, it was a warning to those holding short positions.

3) A second warning to those holding short positions came when AAPL, having captured Resistance at $70, pulled back to find Support there.

4) "Gathering Resistance" at $70 had been transformed into "Gathering Support" by its capture and "Gathering Support" is a Buy Trigger.

Never give a stock "wiggle room". That's how small losses turn into big ones.

There is always another trade just around the corner. There's no need to give one trade a chance to ruin your day.