Student’s Question: I hope I am doing this right?
Power Course Instructor’s Response: You have the right idea... Just keep in mind, that when we discuss support and resistance, think of a room with a floor and a ceiling. The FLOOR is SUPPORT and the CEILING is RESISTANCE. A large ball bouncing between the FLOOR and the CEILING represents PRICE. When PRICE (BALL) hits the FLOOR (SUPPORT) it bounces UP. When PRICE (BALL) hit the CEILING (RESISTANCE) it bounces DOWN. When the PRICE (BALL) breaks through the CEILING(RESISTANCE); the old CEILING (RESISTANCE) becomes the new FLOOR. See the charts below for a visual...