Technical Analysis Plain and Simple: Charting the Markets in Your Language, Second Edition

Summary

The unasked question is “why doesn’t the market jump immediately from one equilibrium level to the next?” The answer is that information flow is not perfect and people do not all reach the same conclusions at the same time. As the masses slowly join a trend or breakout, the momentum builds until the price reaches levels that exhaust excess supply or excess demand. These are then called support and resistance.