medium · Volume Price Analysis support-resistance

What is the primary reason that 'Role Reversal' occurs, turning a former resistance level into a new support level?

  1. Mathematically, once a pivot high breaks, that price level becomes the new Point of Control.
  2. Insiders purposefully manipulate price to re-test their prior accumulation zone before continuing.
  3. Trapped sellers at the ceiling buy to exit at break-even, while breakout-missers buy the pullback.
  4. Market makers are contractually obligated to defend the bid-ask spread at the previous breakout point.

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