the hAnDbook of teChnICAL AnALySISbars on either side of the highest or lowest bar are considered to be less significant
and reliable. N bars on either side of the highest peak or lowest trough is referred
to as an inflection point of strength N.
support and resistance role reversals
In technical analysis, price barriers change roles once breached, that is:
■ (^) Support turns into future resistance.
■ (^) Resistance turns into future support.
This applies to all overlay barriers, which include channels, trendlines, pivot
points, price envelopes, and so on. See Figures 5.34 and 5.35.
figure 5.34 Support and Resistance Role Reversals.
figure 5.35 Support and Resistance Role Reversals.
Source: MetaTrader 4