Get started

Howtotrade

A Beginner's Guide to Candlestick Charts A candlestick chart is a type of financial chart that graphically represents the price moves of an asset for a given timeframe. As the name suggests, it’s made up of candlesticks, each representing the same amount of time. The candlesticks can represent virtually any period, from seconds to years. While candlestick charts could be used to analyze any other types of data, they are mostly employed to facilitate the analysis of financial markets. Used correctly, they’re tools that can help traders gauge the probability of outcomes in the price movement. They can be useful as they enable traders and investors to form their own ideas based on their analysis of the market. The following price points are needed to create each candlestick: Open — The first recorded trading price of the asset within that particular timeframe. High — The highest recorded trading price of the asset within that particular timeframe. Low — The lowest recorded trading price of the asset within that particular timeframe. Close — The last recorded trading price of the asset within that particular timeframe. Collectively, this data set is often referred to as the OHLC values. The relationship between the open, high, low, and close determines how the candlestick looks. The distance between the open and close is referred to as the body, while the distance between the body and the high/low is referred to as the wick or shadow. The distance between the high and low of the candle is called the range of the candlestick. Being able to read candlestick charts is vital to almost any investment style, learn different candlestick patterns and you will be surprised how accurate they are.
OANDA:XAUUSDEducation
by TopTradingSignals
8
INVESTING VS TRADING VS GAMBLING | Know the Difference Hey traders, In this post, we will compare investing and trading with gambling. 📈Investing Investing is the act of putting money in a financial market with the expectations of a long-term positive return. The investing decisions are usually made using fundamental analysis. The main goal of an investor is to predict the long-term market trends and benefit on them. Professional investing also involves assets allocation and diversification aimed to hedge potential risks. 💱Trading Trading is the process of selling and buying financial instruments expecting a short-term (occasionally, mid-term) profit. The trading decisions are usually based on technical and fundamentals analysis. The goal of a trader is to predict local price fluctuations and catch them. Professional trading implies strict, rule-based actions following a trading plan. 🎰Gambling Gambling is the act of betting on a specific event with the expectations of winning some value. Being completely luck-based, gambling usually involves get rich quick schemes and pursuit of easy money. What differs professional trading and investing from gambling is the fact that professional trading / investing involves objective analysis and strict planning, while gambling remains purely intuition based. Unfortunately, most of the market participants pretend that they trade and invest professionally while acting as gamblers in fact. Remember that long-term, consistent profits can be achieved only with the plan. Your intuition may bring some short-term profits, but in a long-run it will most likely lead you to a bankruptcy. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
10
What is FOMO and how we can minimise itI like to try keep explanations nice, simple and short.. everyone one should know the definition of FOMO is (fear of missing out) this is a simple and common emotion that affects us in all different areas of our life but when you bring it to the charts and your trading it can lead to a roller coaster of emotions and mistakes... I found a few things that help me when learning and still controlling it is... Been cautious with who you follow and monitor how your desertions are influenced from others, (hot tips, signals etc) you always want to have a clear view of how you yourself analyse the markets with a strict plan.. you may be a quick intra-day trader but someone you follow gives a signal that might be a trade to hold for weeks... a mix up in trading styles can cost you a loss even though the person you follow makes the right call. This kind of backs off the last suggestion I made but its simple Create a plan, Know which time frame your trading in (short term long term) and trade only if its right by YOUR trading plan. Overconfidence can lead to trying to stay to active on the charts, chasing every possible trade setup and can really mess with your head. Chasing a loss after losing money is another common mistake.. sometimes i take a day or 2 away from the market if I have had a nice winning trade as well as possibly taking a loss. Sometimes its best to take a breather access what you may have done right or wrong and come back with a clear head ready to make smart decisions One of my personal favourite strategy's to limit this situation is, If you want to enter the market but price may not be at the area you think it may support or resist from, take 50% of the usual amount you risk for example you usually risk 1% which may be $100 make it 0.5% which is $50 and then if price goes the way you expect your still entered in a position but then if price goes the opposite way and hits the level you expect then you can enter the other 0.5% of risk to get into another trade a maybe a better entry point... DONT rush into trades on the Monday!! Remember there is a whole week for many opportunity's to arise and sometimes the best opportunity's don't come until the end of the week, I used to over trade on the Monday and end up trying to catch up the rest of the week... So I for a while didn't even look at the charts on the Monday to resist the temptation. Different strategy's will work for different people so find something that works for you and stick to it!! Let me know if you can share any ideas that helped you, it may be able to help someone else!!
Education
by jamison_fx
6
WHY 95% OF TRADERS DO NOT SUCCEED? The evidence suggests that only a very small proportion of day traders makes money year over year. There are certain patterns which may separate profitable traders from those who ultimately lose money. And indeed, there is one particular mistake that in our experience gets repeated time and time again. What is the single most important mistake that led to traders losing money? Here is a hint – it has to do with how we as humans relate to winning and losing. Our own human psychology makes it difficult to navigate financial markets, which are filled with uncertainty and risk, and as a result the most common mistakes traders make have to do with poor risk management strategies. Traders are often correct on the direction of a market, but where the problem lies is in how much profit is made when they are right versus how much they lose when wrong. Bottom line, traders tend to make less on winning trades than they lose on losing trades. Humans aren’t machines, and working against our natural biases requires effort. Once you have a trading plan that uses a proper reward/risk ratio, the next challenge is to stick to the plan. Remember, it is natural for humans to want to hold on to losses and take profits early, but it makes for bad trading. We must overcome this natural tendency and remove our emotions from trading. That will help you to be a consistently profitable trader.
OANDA:XAUUSDEducation
by UnitedSignals
5
FREE 12 WEEKS INTENSIVE TRADING PROGRAM 📚 Hey traders, For those who just started to trade, I suggest a 12 weeks intensive training program. Each week will be dedicated to a specific topic. Starting from the basics you will gradually mature and by the end of the intensive you will have a complete trading strategy. ✔️Week 1 - Practice market trend identification Learn to identify the direction of the trend. Master the recognition of a bullish trend, bearish trend and sideways market. ✔️Week 2 - Practice support and resistance. Learn to identify key levels. Master support & resistance recognition. ✔️Week 3 - Learn candlestick pattern. Study classic candlestick formations and practice their recognition. ✔️Week 4 - Learn price action patterns. Study classic price action patterns: trend-following patterns, reversal patterns and consolidation pattern and learn to recognize them. By the end of the first month, you will mature the basics of candlestick chart analysis. ✔️Week 5 - Practice supply and demand zones. Learn to identify supply and demand zones. Learn to combine candlestick analysis with support and resistance to identify the potential reversal zones. ✔️Week 6 - Practice multiple time frame analysis. Master top-down analysis. Learn to apply all the techniques studied previously on multiple time frames. ✔️Week 7 - Learn different entry strategies. With all the knowledge being obtained, you can practice different entry techniques. You can try trading candlesticks patterns or price action patterns, or simply key levels. Search what works for you. ✔️Week 8 - Learn risk management. Of course, entry strategies are not enough for profitable trading. Learn how to set stop loss and how to manage your risks properly. By the end of the second month, you will have a foundation for a strategy building. ✔️Week 9 - Practice trade management. Knowing how to enter the trade and how to manage the risks, the next step is to learn how to manage the active position (stop loss trailing, position protection, manual closing, etc.) ✔️Week 10 - Create a trading plan. Combine all the knowledge that you gained in a structured trading plan. ✔️Week 11 - Follow the strategy. Be disciplined and follow your rules. Test them and learn to be consistent. ✔️Week 12 - Review your plan. Following your strategy, you will inevitably find its flaws. Learn to constantly improve it. By the end of the third month, you will have a complete rule-based trading strategy. Of course, that won't be a perfect strategy, but you will have broad knowledge in technical analysis. The next 3 months alone should be sacrificed on polishing and improvement of your trading plan. Try this intensive, traders. I strongly believe that you will see a dramatic improvement in your trading upon its completion. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
15
5 Elements of a Smart Trade Plan Find out why you should have a trade plan—and the five elements that may help you put it to work successfully. Element 1: Your time horizon How long do you plan to hold a position? This will depend on your trading strategy. Generally, traders fit into one of three categories: Single-session traders are very active and look to gain from small price variations over very short time periods (minutes or hours) throughout the trading day. Swing traders target trades that can be completed in a few days to a few weeks. Position traders seek larger gains and recognize that it often takes longer than a few weeks to achieve them. Element 2: Your entry strategy Look for entry signals—for instance, divergences from trend lines and support levels—to help you place your trades. The signals you employ and the orders you use to make good on them hinge on your trading style and preferences. Element 3: Your exit plan When it comes to an exit strategy, plan for two types of trades: those that go in your favor and those that don’t. You might be tempted to let favorable trades run, but don’t ignore opportunities to take some profits. Element 4: Your position size Trading is risky. A good trade plan establishes ground rules for how much you’re willing to risk on any single trade. Say, for example, you don’t want to risk losing more than 2%–3% of your account on a single trade. You could consider exercising portion control, or sizing positions, to fit your budget. Element 5: Your trade performance Look over your trading history to calculate your theoretical trade expectancy, meaning your average gain (or loss) per trade. You start by determining the percentage of your trades that have been profitable versus those that haven’t. This is known as your win/loss ratio. Understanding what goes into a smart trade plan is the first step to prepare you for your next trade.
FXOPEN:XAUUSDEducation
by UnitedSignals
4
3 FIBONACCI TOOLS YOU MUST KNOW 💡 Hey traders, In this article, we will discuss 3 classic Fibonacci tools you must know. 1️⃣Fibonacci Retracement Fib.Retracement is my favorite fib.tool. It is aimed to identify strong horizontal support and resistance levels within the impulse leg. We draw this tool based on the high and low of the impulse (from wick to wick) and it shows us POTENTIALLY strong structure levels determined by Fibonacci numbers. Common Fib.Retracement levels are: 0.382, 0.5, 0.618, 0.786. Once one of the levels is reached, wait for a confirmation before you open a trading positions. 2️⃣Fibonacci Extension Fib.Extension indicates strong horizontal support and resistance levels beyond the impulse. Similar to Fib.Retracement tool, Fib.Extension is drawn relying on impulse's high and low (from wick to wick) and it shows POTENTIALLY strong structure levels where the consequent impulses may complete based on Fibonacci number. Common Fib.Extension levels are: 1.272, 1.414, 1.618. Once one of the levels is reached, wait for a confirmation before you open a trading positions. 3️⃣Fibonacci Channel Fib.Channel shows strong vertical supports and resistances (trend lines) within the channel. The tool is drawn based on the trend line of a valid parallel channel (based on wicks) and it shows POTENTIALLY strong trend lines from where the market may retrace. The trend lines within Fib.Channel rest on 0.382, 0.5, 0.618, 0.786 Fib.Levels. Once one of the levels is reached, wait for a confirmation before you open a trading positions. Remember that Fibonacci's are simply tools in a toolbox. In order to use them properly, you need to build a trading system around them, test it and confirm its efficiency. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
11
WHAT IS LEVERAGE IN FOREX? “Leverage” means using a small amount of your own money in order to control a much larger amount of money. Typically, you borrow the remaining amount through your broker. For example, say you want to control a $50,000 position. Your broker might put aside $500 of your own money and borrow the remainder. You now have control over the $50,000 with just $500 from your own account, so your leverage ratio is 100:1. Now, let’s say the $50,000 investment rises by $500, so the full position is now worth $50,500. If you were liable for the full $50,000 (representing a 1:1 ratio), this is only a 1% return on your investment. However, since you only put in $500 of your own capital, the $500 increase represents a 100% return on your investment – that’s way more exciting! Now, it’s important to understand that this cuts both ways. If you lost $500 instead of gaining $500, you would see a -100% return on your investment. Yikes! If you had a 1:1 ratio and put in the full $50,000 you would only see a -1% return. How Much Can You Leverage in Forex? Before you open an account with a broker, you’ll want to check the maximum leverage ratio that you’ll be able to use. The higher the ratio, the bigger your potential gains or losses. Brokers will usually offer 50:1, 100:1, 200:1, or 400:1 ratios. A typical ratio on a standard lot account is 100:1, and a mini lot account will often offer a 200:1 ratio. If you start trading at 400:1, be wary of using small deposits to control large capital, as these can disappear quickly with the volatility of large sums. Lower leverage keeps you safer from mistakes, while higher leverage could bring in higher rewards. How Leverage Affects Your Trading ✅ As we’ve seen, leverage is a powerful tool that can help you win big in the forex market. You can use less capital to control greater positions, giving you flexibility and amplifying your profits. However, it can just as easily amplify your losses. At very high levels, leverage starts to damage your odds of success. Transaction costs represent a higher percentage of your margin the greater your position is. This means that transaction costs already put you at a disadvantage with excessively high leverage.
BITSTAMP:BTCUSDEducation
by SignalProvider
3
Candlestick Rejection Strategy! What it is? Candlestick rejection strategy is a pure price action swing trading strategy. It makes use of the concept of price rejection or candlestick rejection patterns to invalidate counter-trend momentum for a trade continuation. By applying such candlestick rejection strategy onto swing trading, it allows trades to capture spots at which market prices are at rest during retracements before rejoining back the existing dominant trend. How to use? Some trade recommendation for such candlestick rejection strategy is to use it as a candlestick rejection pattern on counter-trend moves. This means that we pick candlestick rejection pattern only for the sake of searching for breakout continuation with the dominant trend at counter trend waves.Entry can be made after the breakout occurs at the high or low of The Mother Bar and stop loss order can be placed at the opposing breakout side's high or low. Further trade help can also be incorporated to help increase the trade's probability of success. For instance, it can be used together with other technical tools such as dynamic moving averages and Fibonacci retracement tool. Some may even want to consolidate other trading strategies to further increase trade’s probability of success. Thank you for reading, we hope you enjoyed our educational effort!
OANDA:XAUUSDEducation
by UnitedSignals
5
Trading Basics | How to Identify The Market Trend 📈📉 Hey traders, In this article, we will discuss a proven price action based way to identify the market trend. ❗️And let me note, before we start, that no matter what strategy do you use in your trading, you should always know where the market is going and what is the current trend. Your judgement should be based on strict and objective rules that proved its accuracy. There are a lot of ways to identify the market trend. One of the simplest and efficient ones is price action based method. This method relies on impulse legs. The market never goes just straight up or down, the price action always has a zigzag shape with a set of impulses and retracements. The impulse leg is a strong directional movement, while the retracement is the correctional movement within the boundaries of the impulse. 📈The market is trading in a bullish trend if 3 conditions are met: 1️⃣the price forms an initial bullish impulse, 2️⃣retraces, setting a higher low, 3️⃣then starts growing again and sets a new high with the second bullish impulse. Once these 3 conditions are met, we consider the market to be bullish, and we expect a bullish continuation in such a manner. 📉The market is trading in a bearish trend if 3 following conditions are met: 1️⃣the price forms an initial bearish impulse, 2️⃣retraces, setting a lower high, 3️⃣then drops lower and sets a new low with the second bearish impulse. Once these 3 conditions are met, we consider the market to be bearish, and we expect a bearish trend continuation. ➖The third state of the market is called consolidation. The market is trading in a consolidation if the conditions for bullish or bearish trend are not met. The price chaotically forms bullish and bearish impulses, usually trading within the range. Knowing the current trend, one always knows whether a current trading position is trend-following or counter trend, or it is a sideways consolidation trade. Learn these simple rules and try to identify the market trend with them. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
9
WHAT IS DRAWDOWN | 3 Types Of Drawdown Explained 📚 Hey traders, In my videos, I frequently use the term "drawdown". Many of you asked me to explain the meaning of that term and share some examples. The account drawdown is the highest observed loss from the highest value of the deposit to the lowest value of the deposit at a certain period of time. Imagine you started to trade with 10,000$ account. At the end of the year, your account size reached 15,000$. However, at some point through the year the deposit value dropped to 6,000$. It was the absolute minimum for the one-year period. At some point, your net loss was -4,000$ or 40% of your account balance. The account drawdown is 40%. ❗️Knowing the account drawdown is very important for the risk assessment of the trading strategy. Usually, 50% and bigger drawdown signifies an extremely high risk. There are 3 types of drawdown to know. Current drawdown - a temporary drawdown associated with the negative total value of opened trading position(s) at present. Once you start trading with 10,000$ deposit, you open several trading positions. Being opened, with the constant price movements, your potential gains fluctuates from positive to negative. For examples, with 3 active trades: EURUSD (-500$ at present); GBPUSD (+200$ at present); GOLD (-100$ at present) your current account drawdown is -400$ or 4% of your deposit. Fixed drawdown - the negative value of the closed trading position(s) at present for a certain period of time. While some of your trades remain active, some are already closed. Imagine the same deposit - 10,000$. On Monday you opened 6 trades, 2 still remain active and 4 are already closed. Your total loss from your closed trades is -500$. Your fixed Monday's drawdown is 5%. Maximum Drawdown - the maximum observed loss from the highest value of the deposit before a new maximum is reached. Starting to trade with 10,000$ you are already trading for 5 years. Your account were growing rapidly and at some moment it reached 25,000$. Then the recession started. You faced a dramatic loss of 12,500$ before you started to recover. That was the maximum observed loss for the period. Your maximum account drawdown was 50%. ❗️Different types of drawdown give a lot of insights about a trading strategy. Its proper assessment will help to spot a high risk strategy and to find a conservative one. Constantly monitor your account drawdown and always check the numbers. What is your highest account drawdown? ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Editors' picks
Education
by VasilyTrader
16
Learn TOP 5 Tips For Trade Management 📖 Hey traders, In this post, I will share with you my tips for trade management. But first, let me elaborate on what is exactly a trade management. Trade management is the set of rules and techniques applied for managing of an already active position. Trade management is a very important element of any trading strategy that should never be neglected. 1. Never remove a stop loss Being in a huge loss, many traders refuse to admit that they are wrong. Instead, watching how the price moves closer and closer to a stop loss, they remove stop loss hoping on a coming reversal. The alternative situation may happen when the price is going sharply in the desired direction. Watching the increasing profits, traders remove a stop loss, being afraid to miss bigger profits. Both situations may lead to substantial, higher than initially planned losses. Driven by many factors, the market can easily burn all gains and move against the desired direction much longer than traders stay solvent. For these reasons, never remove a stop loss. It must be always set. 2. Never modify your stop loss if a position is in loss Watching how the price moves closer and closer to a stop loss is painful. Instead of removing stop loss, some traders move it and give the market more space for reversal. Even though such a technique is safer than the complete stop loss removal, it is still a very bad habit. Each stop loss adjustment increases the potential loss, not giving any guarantees that the market will reverse. It is highly recommendable to keep your stop loss fixed and let the price hit it and admit the loss. 3. Know in advance your profit protection strategy Where do you take your profit? Do you have a fixed tp level or do you apply trailing stop? You should always know the answers. Coiling around take profit level but not being able to reach it, the price makes many traders manually close the trade or move take profit closer to current price levels. Another common situation happens when the market so quickly reaches the desired TP level so the traders remove TP hoping to make bigger than initially planned profit. Such emotional interventions negatively affect a long-term trading performance. TP removal may even burn all profits. Do not let your greed intervene, and always follow your rules. 4. Never add to a losing position Watching how the price refuses to go in the intended direction and cutting a partial loss, many traders add to a losing trade in hopes that the market will reverse and all the losses will be recovered. Again, such a fallacy usually leads to substantial losses. Remember, you can add to a position only AFTER the market moved in the desired direction, not BEFORE. 5. Close the trades manually only following rules Quite often, newbie traders manually close their trades because of some random factors: they saw someone's opposite view, or they simply changed their mind. Remember, that if you opened a trade following your trading plan, you should always have strict rules for a position manual close. Do not let random factors affect your trading. Following these 5 simple tips, your trading will improve dramatically. Remember, that it is not enough to spot and accurate entry. Once you are in a trade, you should wisely manage that, following your plan. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
5
Trading Psychology | How to Perceive Your Trades 👁 Hey traders, In this post, we will discuss a common fallacy among struggling traders: overestimation of a one single trade. 💡The fact is that quite often, watching the performance of an active trading position, traders quite painfully react to the price being closer and closer to a stop loss or, alternatively, coiling close to a take profit but not being managed to reach that. Fear of loss make traders make emotional decisions: extending stop loss or preliminary position closing. The situation becomes even worse, when after the set of the above-mentioned manipulation, the price nevertheless reaches the stop loss. Just one single losing trade is usually perceived too personally and make the traders even doubt the efficiency of their trading system. They start changing rules in their strategy, then stop following the trading plan, leading to even more losses. ❗️However, what matters in trading is your long-term composite performance. A single position is just one brick in a wall. As Peter Lynch nicely mentioned: “In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” There are so many factors that are driving the markets that it is impossible to take into consideration them all. And because of that fact, we lose. The attached chart perfectly illustrates the insignificance of a one trading in a long-term composite performance. Please, realize that losing trades are inevitable, and overestimation of their impact on your trading performance is detrimental. Instead, calibrate your strategy so that it would produce long-term, consistent positive results. That is your goal as a trader. ❤️If you have any questions, please, ask me in the comment section. Please, support my work with like, thank you!❤️
Education
by VasilyTrader
15
How to trade Support and Resistance levels? BINANCE:BTCUSDTPERP Support and resistance levels - are price areas on the chart where the price has ever changed its direction. This place always attracts traders, because near the levels there are obvious places for setting stop losses and entering a trade. Also, there are always limit orders of large buyers or sellers near the levels. We can say that the level is the price area in the market, where traders consider the price to be too high or too low, depending on the current market dynamics. Therefore, it is always important to pay attention to key levels at which support and resistance have reversed roles or there has been a strong price rebound. We can designate support and resistance levels as the place in the market where traders are more willing to buy or sell, depending on current market conditions. This creates a collision zone between buyers and sellers, which often causes the market to change direction. What are levels? Support level is an area on the chart with the potential strength of buyers. The moment when buyers enter the market. The resistance level is an area on the chart with the potential strength of sellers. The moment when sellers enter the market with a large volume, which allows them to take advantage of the buyers and stop the price increase. When the price breaks the support level, the support becomes resistance. Conversely, if the price breaks through the resistance level, the resistance becomes support. - On higher timeframes, support and resistance levels gain more strength. It is important to pay attention to the nature of the price movement from the level: - If the price immediately turned from the level into the opposite trend, then this level can be considered significant. - If the price tests a certain area several times, making a small pullback, most likely, this level will be subsequently broken. How to draw levels on the chart? Support and resistance levels are not lines on the chart, but areas or zones. No need to try to draw them exactly according to the shadows or bodies of the candles. Strive to achieve the maximum possible number of price touches of the levels. This will usually require you to move the level up and down until you find a spot where the market touches that level the maximum number of times. You do not need to rewind the chart far to mark all the important levels. Most often, traders look only at the current monitor screen. Therefore, 100-150 candles will be enough. Most of the levels you will need will be based on price action over the past six months. Focus on key levels that are immediately visible. Don't draw too many levels on the chart. Try to keep only the main ones and discard the secondary ones. If you find yourself wasting too much energy looking for levels, you are probably drawing more levels than you really need. How to use support and resistance levels in trading? A level is a place for a possible entry into a trade. If an additional confirming signal appears at the level, you can think about opening a position. Stop losses are placed by levels and possible targets for profit fixation are determined. In books on technical analysis and on the Internet, you can often read that the more often the price tests the level, the stronger it is. But this is a gross mistake. In fact, the more the price touches the level, the weaker it becomes. Imagine that we have a support level. The price bounces from this level because there are buyers in the market. If the price often returns to the level, this means that buy orders are gradually being executed. And when they are fully executed, then who will buy? Therefore, when there are no buyers at all, the price breaks through the level. It is important not to forget that support and resistance levels are, first of all, zones, and not exact lines on the chart. Otherwise, you may encounter two problems in your trading: the price does not reach the level and the price goes beyond it. When the market gets close enough to the level without hitting it, you may miss the trade because you were expecting a trading setup to appear exactly at the level you chose. In a situation where the price goes beyond the level, you think that the level has been broken out and you try to trade the breakout, but this often turns out to be a false breakout. How to solve these two problems? Very simple. Always treat support and resistance as zones on your chart, not exact lines. How to find out what will break the level? As we already know, support is an area with potential buying pressure. Therefore, when the price approaches the support level, it should turn into the opposite trend. But what if this does not happen and the price starts consolidating at the support level? This is a sign of weakness as the bulls are unable to forcefully push the price up. Or there is strong selling pressure in the market. In any case, this situation does not look optimistic for the bulls and the support will probably not be able to resist. Hope you enjoyed the content I created, You can support with your likes and comments this idea so more people can watch! ✅Disclaimer: Please be aware of the risks involved in trading. This idea was made for educational purposes only not for financial Investment Purposes. * Look at my ideas about interesting altcoins in the related section down below ↓ * For more ideas please hit "Like" and "Follow"!
Education
by Crypto4light
3