What is SR FLIP (SupportResistance Flip)

What is SR FLIP (SupportResistance Flip)

The concept of S/R FLIP (Support/Resistance Flip) refers to the transformation of support and resistance levels of price movements into each other in technical analysis. This term refers to situations where prices move from a support level to a resistance level or from a resistance level to a support level.

The concept of S/R FLIP (Support/Resistance Flip) refers to the transformation of support and resistance levels of price movements into each other in technical analysis. This term refers to situations where prices move from a support level to a resistance level or from a resistance level to a support level.

For example, an asset price may move at a certain resistance level for a long period of time and fail to move above that level. However, if the price continues to rise after a certain period of time by breaking this resistance level, this level has now turned into a support level. This is called S/R FLIP.

Likewise, an asset price can move at a certain support level for a long period of time and fail to fall below that level. However, if the price breaks this support level and continues to fall after a certain period of time, this level has now turned into a resistance level. This is also called S/R FLIP.

S/R FLIP usually occurs in sideways trends or oblique trends and is confirmed by volume. So, when prices are moving at a certain level, an S/R FLIP is more likely to occur if volume is high.

S/R FLIP is used by investors and traders to identify support and resistance levels and predict the direction of price movements. Therefore, the concept of S/R FLIP is very important in technical analysis.

An example of S/R FLIP is shown in the chart below.