The Bouncing Price in a Trend
The offsetting reaction high and low price pattern is especially difficult to interpret when resistance and support are both moving in a flat progression. With rising or falling price trends, the offsets can be interpreted by comparing price to volume and momentum signals; however, when the reaction bounces between established high and low levels, you may see breakouts in both directions, repetitively and without identification of any clear trend to follow.
The longer this situation endures, the less trust should be invested in the appearance of any price movement that seems to be holding. The past experience of short-term breakout makes the sideways trading range stronger, but adds great uncertainty to the ability ...
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