Bounce Back or Break It? How to Understand

Hello,

I was wondering how to undertand will the price will break the support point or just bounce back? (or resistance) Usually i’m looking at the past points and try to understand how strong is the support or resistance points. But of course, it is not 100% accurate.

Do you have some special techniques? Thank you.

It certainly isn’t.

There’s a little confusion, generally, in forum conversations: many people seem to imagine that support and resistance somehow “ought” to be followed by prices. The reality, of course, is that [I]previous S/R[/I] and [I]future S/R[/I] are [U]two different things[/U] which can sometimes coincide.

I don’t think there are hard and fast or reliable rules. But in general the more touches a horizontal line has had, and the more recent they are, the more likely that line is to be “relevant” over the short term.

On the charts I normally trade from, I also find “second breaks” quite a bit more reliable, overall, than initial breaks, which can often just be a test/fake-out.

No special techniques, here: I “wait and see” and don’t try to predict.

Bob Volman’s books cover this subject in huge detail, and are well worth the effort involved in reading them.

Never count on the initial breaks, always wait for the second one or the third one…it is never easy to exactly gauge when a price will break the S/R,at most you can make an educated guess but that’s about it

There is no special technique for support and resistance. You should have more than one pointer (relying only on S/R is not a god idea) when you are making your prediction.

So, what are the other pointers for you?