How Do Identify The Strong Support/Resistance Areas!?
Updated
Here is an example from a live action! You can see the green box we don't have a candle close inside this area at the moment!
So, that means we have a very strong area what we dealing right now! Up and down, strong candles smash this with a full break below and full break above! This "full candle breaks" means that we need a very strong power from sellers/buyers to break this and what we get if we see some powerful volume - we see those levels get smashed! And those bounces are just a weak try to go through this level - the buyers try to push the price up but sellers react quickly and we are back below the green box!
So hopefully this was helpful and now You can identify the strong levels better!
Don't forget to SHARE this, hit the LIKE and the FOLLOW button if you feel this topic deserves it!
That's the best way to support me and help to push this analysis to other users.
Best regards!
So, that means we have a very strong area what we dealing right now! Up and down, strong candles smash this with a full break below and full break above! This "full candle breaks" means that we need a very strong power from sellers/buyers to break this and what we get if we see some powerful volume - we see those levels get smashed! And those bounces are just a weak try to go through this level - the buyers try to push the price up but sellers react quickly and we are back below the green box!
So hopefully this was helpful and now You can identify the strong levels better!
Don't forget to SHARE this, hit the LIKE and the FOLLOW button if you feel this topic deserves it!
That's the best way to support me and help to push this analysis to other users.
Best regards!
Note
Share Your thoughts on the comment section and I try to help You as much as I can!Have a nice day!
EDIT: While I writed the post we got another touch from this area and another bounce back below!
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.