50 / 50
Price structure
After support breaks, why do some people wait for a bounce and then sell?
Support and resistance flip
What it bets
Once a price that used to hold is broken for real, the next test of that price from the other side turns it into the opposite role.
How the rule is written
First define held: the price was tested and rejected at least once. Then define broken: a close stays on the other side, rather than a wick poking through. Then wait for price to return to that level. Trade in the direction of the break only after the return is rejected. Without a break, and without a retest, it is not a flip.
When it fails
A wick through the level gets treated as a break, so a retest is always underway. Or the level breaks and never comes back, and the rule keeps waiting.
Do not confuse it with
Fading a range assumes the boundary is still valid. A support and resistance flip assumes the boundary has already failed, and that it holds again from the other side. The same price, and the two rules point opposite ways.