What is an S/R Flip?


Support Resistance Flip in Trading

An S/R flip is a “support / resistance flip.” That is, when support becomes resistance or resistance becomes support (when support and resistance flip).

One example can be seen in the chart above. In the NTDOY chart above $40-ish had been acting as support from June 2017 until November 2018. However, when NTDOY lost support back in in late November / early December 2018, previous support started acting as resistance.

At the time of writing this article Nintendo’s price had been finding resistance at the $40-ish range. Previous support had “flipped” and started acting as resistance. Support and resistance “flipped.”

This pattern can occur on small or large timeframes, and of course old resistance can become support just as easily as an old support level can become resistance.

If support flips to resistance, or resistance flips to support, it is a support / resistance flip… or “s/r flip” for short.

For more reading, see: TradingSetupsReview.com’s FLIPPING SUPPORT AND RESISTANCE FOR SWING TRADING for more explainers and see Alpha Bot System on TradingView for more examples (most of their TA uses potential S/R flips to find entries and exits).

NOTES: An S/R flip is generally referring to horzitonal support and resistance flips.

TIP: S/R flips tend to make good entries. When price tests previous support as resistance in a downtrend it can make a good short entry and when resistance is retested as support in an uptrend it can make a good short entry due to the level already being validated previously as support or resistance respectively.

Author: Thomas DeMichele

Thomas DeMichele has been working in the cryptocurrency information space since 2015 when CryptocurrencyFacts.com was created. He has contributed to MakerDAO, Alpha Bot (the number one crypto bot on Discord),...