When the trendline is broken and prices retrace to the same trendline, the real resistance come from the price level which was last seen as the area of supply. The trendline has nothing to do with acting as a resistance. Why should price recognise the trendline as resistance? it is the supply and demand zone that shld be the real reason for traders to go short or long.
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Hello Chuck,
When the trendline is broken and prices retrace to the same trendline, the real resistance come from the price level which was last seen as the area of supply. The trendline has nothing to do with acting as a resistance. Why should price recognise the trendline as resistance? it is the supply and demand zone that shld be the real reason for traders to go short or long.