virginiac, its a probability thing.. usually when a price falls...

virginiac, its a probability thing.. usually when a price falls below an important support level then it either continues down to the next level or it may retest that support from below then continue down, or it may regain the level and proceed upwards. the higher probebilities are that it will continue down either straight off or after retesting that level. its called respecting the level. Then you look for the next support level to exit a short trade.. but it can do funny things especially when it has been sold off so much already (oversold) and when one suspects the investment class are getting desperate to keep prices up.