FTSE Bounces Between Support and Resistance

(Click on image for Larger View)

 

This is another example of how price interacts with Support and Resistance levels. If you’ve not read my earlier article on this subject, please feel free to have a read here.

This is the FTSE 100 on a 5 min chart on the 2nd of May 2012.

Price was making Lower Low and Lower Highs. On top of that, price was also constantly bouncing off old Support levels (red arrow) that has turned into new Resistance levels (green arrow), it breaks through the existing Support level and then the process repeats again.

Leave A Response

* Denotes Required Field