The market's reaction to support and resistance can happen in various ways ...

As you go through technical analysis training, the following are some patterns that can be observed when this shows up in the market.

One that may be called touch and away as if the market is trying to reach on for some level of support and resistance, and when it gets close , it suddenly reverses and goes in the opposite direction , as if there was a build-up of pressure that is suddenly released . This is known as an exhaust. Resistance level holds in this formation . It is a pattern that seems like it is trying to break its way through , by worrying the level of support or resistance like a dog and his bone, but it doesn't work out, and does not break through , and the market suddenly turns and moves in the opposite direction .

Another way that support and resistance can give way is that prices "pop" through the anticipated resistance level and continue on higher . The gap, known as a "pop" can happen suddenly and can be surprising to traders. In these days of 24-hour markets and electronic trading platforms there are fewer gaps like this that occur as the overnight trade is continuous and not a long time where no trading occurs. Still gaps can still occur , and it's important to know how you should trade them . The thing to remember when taking technical analysis training course is that after it is broken, support becomes resistance and resistance becomes support . The new price level will usually test the support and resistance that was previously in place and then will go on up in the pop's direction.

Way number three that there is a breakdown of support and resistance is that the anticipated barrier is sliced through by prices as a knife cuts through soft butter, as if there were no support or resistance there at all .... and that's exactly what occurs . Price quickly scoots right on through . We see this occur when we anticipate support or resistance on one time frame but there is no backup from a time frame that is higher. For example, if we see resistance on the daily but to that point the weekly chart shows nothing - we should stay alert.

This information is an important part of technical analysis training course - when the phenomena you think is there is not there in reality . It is a situation where the lower time period technical analysis shows support , but it is non-existant in reality, or if it does exist in reality it is only weak or slight and there is no real market effect . The trader who is astute will realize what is happening because setting up in the area there won't be higher time period tools . The great thing when this happens is that it can be seen fast and we will be able to determine very soon that this is a negative pattern and that in the area there is not resistance and support .

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Author: Peter Markham is a Forex trader with 30 years practical experience in the markets. He received his education in Sydney and Los Angeles and has been a trading consultant worldwide. He has written widely on Technical Analysis Training Course. Among the many choices Peter recommends this technical analysis training course for an original and productive trading approach.