| Price has memory. Market movement triggers significant conflict between bulls and bears. These scarred battlegrounds leave a residue of their presence at specific price levels for a long time. When trend finally swings back toward these emotional hotspots, it routinely pivots off the same reversals, gaps and candlesticks as prior passages. Always look backward from the current action to see what happened the last few times that price made its passage. S/R zones located within these "trend mirrors" tend to be very strong and can provide excellent cross-verification signals. |
