Support Resistance Flip

A support resistance flip occurs when a previous support level is broken and turns into a resistance level, or vice versa. This transition indicates a significant shift in market sentiment and supply-demand dynamics.

It is one of the most reliable technical patterns, as it shows that the market's view of value has fundamentally changed. When a price breaks through a support, the traders who bought at that level are now trapped, and they may look to sell at their breakeven point, turning the old support into new resistance.

This psychological shift reinforces the new role of the price level. Traders watch for these flips to confirm trend reversals or continuations.

They represent a clear, objective signal in an otherwise noisy market. Mastering the recognition of these flips is essential for high-probability trading.

It is the physical evidence of changing market conviction.