Educational Reference: Support Gained and Lost progression.
Price action always moves from levels of support gained or lost. Support lost is what many call resistance. When retracing an up move, price uses previous levels of support lost as inflections points. When hitting a support lost level, price will travel back to levels of support gained. I drew levels connecting them from right to left to help identify and reference where the inflection points were targeting in the leg to the left.
Follow the numbers from 1-21 to follow the progression. Look left at each new number to find where the previous level was either gained or lost. This is how all markets work.
Follow the numbers from 1-21 to follow the progression. Look left at each new number to find where the previous level was either gained or lost. This is how all markets work.