Support and Resistance Flip (Role Reversal)

A support and resistance flip, also called role reversal, happens when a level that acted as resistance is broken and later acts as support, or the other way round. It is one of the oldest ideas in chart reading and shows up in every market and timeframe. This sample strategy trades the retest after a confirmed break.

Why this setup

A level becomes important because a lot of trading happened there. When price breaks above resistance, sellers who sold at that level are now losing, and buyers who missed the move may want to get in if price comes back. Both groups can create demand when price returns to the level. Waiting for the retest also gives you a nearby, logical place for the stop.

Entry rules

1. Find a horizontal resistance that has been touched at least twice.
2. Wait for a decisive close above it, ideally with a larger-than-usual candle.
3. Do not chase the breakout; wait for price to come back to the level.
4. Look for signs of rejection at the level, such as a long lower wick or a small bullish pattern on a lower timeframe.
5. Enter on a break of the reaction candle's high.

Exit and stop

• Place the stop below the level and below the retest low, with a small buffer for the spread.
• Target the next resistance level above.
• If price closes back below the level, the flip has failed; exit.
• Once price moves away from the level, trail the stop below each new swing low.

Risk notes

Levels are really zones, not exact lines. Some retests dip deeper before holding, and some never come at all. Missing a trade is acceptable; entering without a retest means you are running a different strategy.

Important: This is a sample educational strategy, not a buy or sell recommendation. Test every rule first, with a backtest on historical data and then on a demo account, and decide whether to use or adapt it only after you understand how it behaves in different market conditions.