I was published an educational document about trend and channels before cos trend is most important thing for traders imo, now i’d like to talk about support and resistance..
- Once you see trend or a channel than you should see where is support/resistance to take a position.
- No matter how good trader you are and no matter which tools you use, the main idea; buy at the support and sell at the resistance and stop loss under the support.
- On the chart i touch on some common chart patterns i use and grey boxes shows supports and resistances..
- As you see the thing, for all these patterns, you can take a position with broken support or resistance. before necklines break, these patterns mean nothing.
- Another important thing is, once support/resistance broken, waiting for a retest to buy is safer way to trade..
- Once you see trend or a channel than you should see where is support/resistance to take a position.
- No matter how good trader you are and no matter which tools you use, the main idea; buy at the support and sell at the resistance and stop loss under the support.
- On the chart i touch on some common chart patterns i use and grey boxes shows supports and resistances..
- As you see the thing, for all these patterns, you can take a position with broken support or resistance. before necklines break, these patterns mean nothing.
- Another important thing is, once support/resistance broken, waiting for a retest to buy is safer way to trade..
