Prices formed as the result between BUYER and SELLER. If seller push higher than buyer it is BEARISH, price will go down. If buyer push higher than seller it is BULLISH, price will go up.
Click Picture to ZOOM!!!
I used Dow Jones Industrial chart to help me to identified Support and Resistance. At May 2006 Dow reach its top position at 11700 then go back down to 10667 and next October 2006 Dow broke its resistance level (11700) and reach new high price!! At February 2007 reach NEW TOP AGAIN (12800) after that formed little hole, hoho BUYER getting more serious and break its top again (Resistance 12800). More-more buyer came for the party until it reach 14000, it went back down till 12800, then go back up again but it could not break its resistance LEVEL AT 14000 (October 2007), OH NOOOO TIME TO BEARISH!! TIME TO SELLL.
At December 2007 candlestick went down but did not break support 12800 (August 2007). Oh BUYER back again up up up up but not reached resistance 14000 (July 2007). The market slumped at January 2008, broke its support 12800 (August 2007). SELLER TOOK THE MARKET!!! Then made new STRONG support 11900 (January 2008). Till June DOW JONES INDUSTRIAL SLUMPED. Broke its STRONG support 11900 and BREAK BIG THREE YEARS SUPPORT 10677 (October 2008)!!
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