Now that we have covered how swing high resistance looks like, let’s look at the next strongest resistance: the pullback resistance.
Pullback resistance is formed when a swing low is broken and price makes a “pullback” to that previous level. In the example below, we can see that price broke a swing low resistance turning it into a pullback resistance.
The Support and resistance indicator for MT4 will highlight the pullback resistance for you.
Finding Overlap Resistance on our MT4 Support & Resistance Indicator
Once we have found a pullback resistance, it is important to keep an eye on this level. Because once price reverses off it, it becomes an overlap resistance.
Pullback resistance turns into a strong graphical overlap resistance if price reverses off it. This shows that there are more bears than bulls at this key decision point.
