Lessons › Market structure › When the floor becomes the ceiling
World 2 · Market structure · lesson 9 · level 2
When the floor becomes the ceiling
Once a floor breaks it often turns into a ceiling, and a broken ceiling often turns into a floor.
What it is
Price rose back to a level that stopped it before, and turned down again.
Your task in the app
Where is resistance? Then decide: buy, sell, or wait?
How often it worked
| Market | Times found | Target first | Stop first | Went nowhere |
|---|---|---|---|---|
| India (NSE) | 36 | 42% | 56% | 3% |
| United States | 43 | 44% | 54% | 2% |
| Japan | 31 | 36% | 58% | 6% |
| Crypto | 407 | 39% | 50% | 11% |
| Forex | 47 | 36% | 53% | 11% |
| Commodities | 10 | 40% | 60% | 0% |
Counted on real past charts by the Trading Class research engine, 574 cases in all. Past odds, not a forecast.
Read more on the Resistance rejection pattern page.
Goal of this lesson: Understand how broken support can become resistance and broken resistance can become support.