Stocks & Commodities V. 32:10 (20-25, 37): Demystifying Support & Resistance, Part 4 by Sylvain Vervoort

Stocks & Commodities V. 32:10 (20-25, 37): Demystifying Support & Resistance, Part 4 by Sylvain Vervoort
Item# V32C10_859VERV
Availability: In Stock

Product Description

Exploring Charting Techniques

Demystifying Support & Resistance, Part 4 by Sylvain Vervoort

The term support & resistance comes up often when discussing price charts. But when is a support level really a support, and when is a resistance level really a resistance? In this article, I will look at the static and dynamic price support & resistance levels.


Bullish trends take place because of the failure of resistance levels. But at the same time, most bullish trends end at a resistance level. In a bear trend, most support levels fail, but more often than not, bear trends end at a support level.

When do you know a bullish trend has begun? Generally speaking, there are four steps in a bullish reversal. The first is that price has to reach a bearish downtrend support, retracement, or price target. Next, there is an upward breakout of a downward channel or a flat trading range. The third step is the formation of a higher bottom. The last step is the occurrence of a higher high. The order of these steps may differ.

These four steps are depicted in the chart of the 30-minute emini futures in Figure 1. At point 1 price finds static support at the level of the previous lows. At point 2 it breaks above the trading range and out of the downward channel. At point 3 there is a higher low, and at 4 the last high is broken.

*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at users can view the S&C Digital Edition in the subscriber's section on

Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order