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Bearish Resistance

A bearish resistance line is drawn above falling highs. A popular application of bearish resistance lines involves connecting two successively lower highs to form a test. A third high that falls upon the line confirms the resistance line. Subsequent penetration of an established resistance line is commonly thought to signal a change to an up trend.

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see, John J. Murphy, Technical Analysis of the Futures Markets, A Comprehensive Guide to Trading Methods and Applications, New York: New York Institute of Finance, A Prentice-Hall Company, 1986, p. 69.