Role reversal
Old ceiling, new floor
When price breaks through a level and closes beyond it, the level often flips: old resistance becomes new support, and old support becomes new resistance. Many traders wait for price to come back and retest the flipped level.
Test yourself
Price broke resistance, then came back to it. What is that level likely to act as now?
SupportA broken resistance level often turns into support on the retest.
What is a retest?
Price returning to a broken level to check it from the other sideThe retest shows whether the flipped level now holds.
Which is the stronger break?
A candle that closes clearly beyond the levelA close beyond the level shows acceptance at the new price.
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Candlr is educational. Nothing here is financial advice, and trading involves a high risk of loss.