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 got taken down with the stock market in late November / early December, the previous support started acting as resistance.
Now Nintendo is sort of trapped below $40-ish dollars. 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.
NOTES: This can be referring to any sort of support resistance (doesn’t have to be horizontal support like I showed). A break below support or above resistance itself isn’t a flip, the price action actually has to start treating the previous support as the new resistance or resistance as the new support.