Stop Chasing Breakouts! Master the "Retest" for High-Probability Gains.
When a former resistance level becomes a new support level, traders call it an S/R Flip (Support/Resistance Flip).
🔄 THE S/R FLIP: When the Ceiling Becomes the Floor 🏗️📈
The Concept
In a classic bullish move, the price finally smashes through a "ceiling" (resistance). But the real trade happens when the price comes back down to "kiss" that same level and bounces. This proves that the sellers are exhausted and buyers are now defending that price.
What to do when the flip happens
Don't FOMO the Breakout: Many traders buy the moment the price pokes above resistance, only to get caught in a "Fakeout."
Wait for the "Backtest": Patiently wait for the price to return to the broken resistance level.
Confirm the Bounce: Look for a Bullish Rejection—like a long lower wick or an "Engulfing Candle" right at that line.
Check the Volume: A successful S/R flip should happen on lower volume during the dip, followed by spiking volume on the bounce.
Trade Setup:
Entry: Buy at the first successful bounce off the new support.
Stop Loss: Place it just below the new support zone (approx. 2-3% below).
Target: The next major historical resistance level.
Pro-Tip: In the 2026 market, look for ETHA or
$SOL to do this frequently. When institutional funds enter, they love to "limit buy" at these old resistance levels, making them incredibly strong floors.
#TradingTips #SRFlip