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Support_and_resistance

Mastering Trading with Support and Resistance LevelsTrading with support and resistance levels is a fundamental strategy that offers insights into market psychology and potential trade entry and exit points. This guide will explore how to effectively trade using these levels, highlighting the importance of confirmation, rejection patterns, candlestick patterns, and confluence with other indicators. Understanding Support and Resistance - Support : A price level where a downtrend may pause due to a concentration of demand. - Resistance : A price level where an uptrend can pause or reverse because of a concentration of selling interest. The Significance of Confirmation Confirmation is crucial when trading with support and resistance, as it ensures that the price respects these levels before making a trade. Waiting for confirmation reduces the risk of false signals. Candlestick Patterns: The Language of the Markets Understanding candlestick patterns is essential for interpreting market sentiment at support and resistance levels. Patterns like bullish engulfing or bearish engulfing suggest strong reversals. Finding Confluence with Other Indicators Confluence enhances the reliability of trading signals. Combining support and resistance analysis with other indicators like moving averages or the stochastic RSI can provide stronger entry or exit signals. Integrating Support and Resistance into Your Trading Identify key levels : Mark clear support and resistance levels on your chart. Wait for confirmation : Confirm the level is holding through candlestick patterns or price action before trading. Look for rejection patterns : Observe candlestick formations for reversal signals. Seek confluence : Use other indicators to validate your trading signals. Manage your risk : Always set a clear stop-loss order to manage potential losses. By employing these strategies, traders can enhance their market navigation skills, focusing on managing risk and seizing the right opportunities. With patience and practice, trading with support and resistance levels can be a vital part of a successful trading approach.
Education
by AlgoAlpha
Mastering Support & Resistance This video dives into the fundamentals of support and resistance, the cornerstones of technical analysis. We'll cover: ** Identifying trends:** Learn how to spot bullish and bearish trends using higher highs/higher lows (HH/HL) and lower highs/lower lows (LH/LL). ️** Support & Resistance Levels: Discover how to pinpoint key price levels where the market may bounce or reverse, creating potential trading opportunities. ** Fibonacci: Unlock the power of the Fibonacci retracement to identify high-probability trade entry points at the 61.8% level.
Education
by tradingwithanthony
What is Support & Resistance (S&R)? What Types of S&R?Support & Resistance (S&R) is one of the basic topics that we need to know in trading, whether trading forex, shares or cryptocurrency. Support & Resistance can show the upper and lower limits of price movement in a certain time. *) Resistance is the upper limit to limit prices from rising further. *) Support is the lower limit to limit prices from falling further. The market moves because of differences in demand and supply. When demand is greater the price will rise, if the supply is greater the price will move down. Types of Support & Resistance: 1. Classic S&R The way to determine S&R in Classic S&R is using previous swing high and swing low as referece (picture no.1) The advantage of using this method is we can know previous S&R and we can use that as our reference to determine target profit, or stop loss area. The weakness of using classic S&R is when the price break S&R we don’t know the next S/R 2. Dynamic S&R The way to determine Dynamic S&R is using moving average. We determine high point & low point when price touch moving average diagonal line. (picture no.2) 4. Harmonic S&R Harmonic S&R Is useful to determine S&R when price in all time high. The weakness of Classic S&R is when the price break S&R we don’t know the next S&R, because of that we use Harmonic S&R to analyze the next target profit or loss area. We use Fibonacci methode (picture no.3) to determine S&R How we know this is a strong S/R or not? That is a strong S/R when the price touch the S/R area and the price have a strong movement. Function of Support & Resistance Support & Resistance makes us know if this area can be a price target area, so we understand if the price doesn’t always go up or down, so we must to take profit and we have to put a stop loss. In stock market activity, support & resistance prices indicate certain psychological levels, like: *) Support is the level where people buy shares at the lowest price and make a profit when the price rises. *) Resistance is the level where people have bought shares at the highest price and experienced losses because the price fell. That activity becomes a repeating pattern. People tend to buy at the support price because they know the price will rise and when the price is almost or already in the resistance area they will sell. In the Forex market, we can have 2 positions in the same time, So when the price is at the support we can make a purchase, and when the price is at resistance we can sell the previous position and in the resistance area we can also look for a selling position with a profit target in the previous support area and a stop loss area above the resistance area, because if price breaks through the resistance, price will continue to rise and create a new resistance. Notes: 1. The source of this writing comes from several ideas that I have read, heard, or experienced personally. So if those of you reading this post & feel this is your idea, Please allow me to share again, because maybe I also learn from you. 2. The topic of Fibonacci and Moving Average will be discussed at another time Thank You. 28 Sep 2023
BINANCE:BTCUSDEducation
by moca_nomic
📊 6 Examples of Rejections at S/R Areas📍Support and Resistance 101 Support and resistance are two foundational concepts in technical analysis. Understanding what these terms mean and their practical application is essential to correctly reading price charts. Prices move because of supply and demand. When demand is greater than supply, prices rise. When supply is greater than demand, prices fall. Sometimes, prices will move sideways as both supply and demand are in equilibrium. Like many concepts in technical analysis, the explanation and rationale behind technical concepts are relatively easy, but mastery in their application often takes years of practice. S/R level areas can develop inside different candlestick patterns as well as trend trading patterns. The Resistance being the top of the pattern and the support being the bottom of it. 🔹Technical analysts use support and resistance levels to identify price points on a chart where the probabilities favor a pause or reversal of a prevailing trend. 🔹Support occurs where a downtrend is expected to pause due to a concentration of demand. 🔹Resistance occurs where an uptrend is expected to pause temporarily, due to a concentration of supply. 🔹Market psychology plays a major role as traders and investors remember the past and react to changing conditions to anticipate future market movement. 🔹Support and resistance areas can be identified on charts using trendlines and moving averages as well as different types of patterns. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
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