Was looking through charts spanning decades. I suggest:
ZEROTH LAW - rule of buy resistance & sell support
In bull market, buy on break resistance sell on break support
In bear market, short on break support cover on break resistance
In mixed market, research enjoy holidays and wait for next trend
APPLICATION
In bull market, buy on breaking longer term resistance, sell on breaking short term support. After breaking long term resistance, if price retrace to test resistance-turn-support and then take out the breakout high, you will see a huge markup. Vice versa for bear.
ADDITIONAL NOTES
The game of trading is largely based on risks/rewards. Given a technical picture, has one more to gain by being long or short? This gives crowd the impetus to continue or break trend. Of course, ever-changing fundamental conditions ultimately shape these setups of changing risks/rewards for bears and bulls.
