[Eric's Trading System] The Vertical Support Area
Updated
Introduction:
The Vertical Support Area can help us identify the entry opportunity when we make long trade. It is formed by at least three candlesticks:
1. bullish candlestick or bearish candlestick
2. bullish candlestick or bearish candlestick
3. bullish candlestick, the close price must higher than the high price of the second candlestick, meanwhile, there is a significant increase in volume, this is the most important requirement.
The third candlesticks help us identify whether there formed a vertical support area.
How to draw the vertical support area
1. the top should be the upper edge of the entity of the second candlestick
2. the bottom should be the lowest price of the second candlestick
Three Steps to Trade
1. Identify
2. Wait for the price pullback
3. Find a reversal signal in small time periods, such as inside-bar, pinbar
Q&A
Q1. If the third candlestick close price higher than the high price of second candlestick, but the volume didn't increase, should we identify it as the vertical support area?
A1. We can also look at it as the support area, but it is not as strong as we think, you should focus on the reaction when the price back the area
Q2. Can it always support the price?
A2. Of cause not, but it can help up improve our breakeven
Q3. Can the price always pullback?
A3. Not for sure, if we miss the opportunity, find the next
Hi, I'm Eric, a cryptocurrency trade enthusiast, focus on harmonic trading, I am going to share my trade though which will help me review and improve my trade system I think.
If you like my thought, please give me a like. Thanks
The Vertical Support Area can help us identify the entry opportunity when we make long trade. It is formed by at least three candlesticks:
1. bullish candlestick or bearish candlestick
2. bullish candlestick or bearish candlestick
3. bullish candlestick, the close price must higher than the high price of the second candlestick, meanwhile, there is a significant increase in volume, this is the most important requirement.
The third candlesticks help us identify whether there formed a vertical support area.
How to draw the vertical support area
1. the top should be the upper edge of the entity of the second candlestick
2. the bottom should be the lowest price of the second candlestick
Three Steps to Trade
1. Identify
2. Wait for the price pullback
3. Find a reversal signal in small time periods, such as inside-bar, pinbar
Q&A
Q1. If the third candlestick close price higher than the high price of second candlestick, but the volume didn't increase, should we identify it as the vertical support area?
A1. We can also look at it as the support area, but it is not as strong as we think, you should focus on the reaction when the price back the area
Q2. Can it always support the price?
A2. Of cause not, but it can help up improve our breakeven
Q3. Can the price always pullback?
A3. Not for sure, if we miss the opportunity, find the next
Hi, I'm Eric, a cryptocurrency trade enthusiast, focus on harmonic trading, I am going to share my trade though which will help me review and improve my trade system I think.
If you like my thought, please give me a like. Thanks
Note
Example1:Note
Fail Case:Support Area -> Resistance Area
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.