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Supportandresitance

The key to starting a trade is support and resistance points Hello, traders. If you "Follow", you can always get new information quickly. Please also click "Boost". Have a nice day today. ------------------------------------- As you study candles, you will learn about trend reversal sections. Therefore, rather than learning the shapes or patterns of candles, when you study them, you will be able to see the support and resistance points and sections made up of the selling area and trend reversal sections in a big picture. Therefore, rather than trying to memorize the shapes or arrangements of candles, it is important to see whether support and resistance points and sections are formed when such shapes, arrangements, and patterns appear. The same goes for other studies related to charts. - As you study candles, you will find that what you have studied appears in the sections where candles are gathered. These areas are drawn as horizontal lines to indicate support and resistance points. However, objective information is needed to conduct trading on the horizontal lines drawn like this. Otherwise, even the support and resistance points you drew will likely become useless lines if you conduct barrack trading because you don't trust them. Be careful because your psychological state will interfere with analyzing the chart. - The easiest way to obtain this objective information is the Heikin Ashi chart and the Renko chart. The Heikin Ashi chart and the Renko chart help you check the trend because they show fewer fakes and sweeps. (Heikin Ashi chart) (Renko chart) Among these, you can immediately see that the Renko chart is a bit easier to find support and resistance points. - You can think of the points near the end of the blocks on the Renko chart as having strong support and resistance points. Therefore, among the horizontal lines drawn on the chart above, the 2800.0 and 4000.0 points are the end points of three blocks, so they can be seen as strong support and resistance points. If you change the Renko chart to a regular candle chart, you can clearly see that it will form support and resistance points or sections. However, since the Renko chart changes the price in blocks, it is difficult to trade at this point. Therefore, the Heikin Ashi chart or Renko chart is good to use when analyzing the chart, but it is difficult to trade. - To compensate for this, we created a horizontal line at the price position using indicators (StochRSI, OBV, CCI, RSI) that have been used for a long time. The horizontal line connected to the current candle position plays the role of the current support and resistance point. And, since the longer the horizontal line, the stronger the support and resistance role, you can see that it plays the role of support and resistance even if it is not connected to the current candle. - The support and resistance points drawn on the Heikin Ashi chart or Renko chart are difficult to use for trading, but you can easily check the support and resistance section by looking at only the 1D chart. However, in order to display support and resistance points with a general candle chart, support and resistance points must be displayed on the 1M, 1W, and 1D charts. And, the order of charts with strong support and resistance is 1M > 1W > 1D charts. - When you look at the 1M, 1W, and 1D charts using the HA-MS indicator, horizontal lines like the above are displayed. You can display them by changing the line type or line thickness to make them easier to see and then proceed with trading. ---------------------------------------------------------------- The above content corresponds to the method of finding support and resistance points included in general chart-related books. Of course, it is different from the explanation in the chart-related book, but I explained how to use indicators to more clearly indicate support and resistance points. - Even if you trade with the support and resistance points above, it will not work well when you actually trade. This is because you are not familiar with the most important trading strategy in trading. In conclusion, the most important thing is to create a trading strategy, rather than finding the support and resistance points explained above, looking at the trend line, or looking at indicators. However, it is very difficult to create a trading strategy that fits your investment style from the beginning. So, you should practice creating a trading strategy that suits you while trading based on the information of the objective chart. In order to trade, you need to decide on the following three things: 1. Investment period 2. Investment size 3. Trading method and profit realization method The above three things must be determined. No. 1 and 2 are determined according to your investment style. Therefore, it is recommended not to change No. 1 and 2 after you start trading. 3. Based on the information of the actual chart, the buy section, sell section, and stop loss point are determined. In addition, the profit realization method can be determined according to the investment period. The profit realization method is: 1. How to get cash profit 2. How to increase the coin (token) corresponding to the profit There are methods 1 and 2 above. - In order to create a trading strategy, it is important to display all the information you want on the chart before starting the transaction. If you do not, and then display lines on the chart after starting the transaction, psychological factors will be added and displayed, so the possibility of not trusting the lines drawn after starting the transaction increases. To prevent this, it does not matter if you use the indicator added to the HA-MS indicator. The reason is because it is objective information. You should increase profits or reduce losses by adjusting the investment ratio while conducting the transaction using this objective information. - Have a good time. Thank you. --------------------------------------------------
Education
by readCrypto
4
Chart Analysis: Establishing Trading Strategies --------------------------------- Hello, traders. If you "Follow", you can always get new information quickly. Please click "Boost" as well. Have a good day today. ------------------------------------- When you start studying charts, the first thing you learn is about candles. However, you start studying about the Open, Close, High, and Low of candles. When you start studying about the Moving Average, you start to think that you understand the charts. However, when you actually start trading with the Moving Average, you realize that nothing works properly. So, you start studying other indicators. - The above is based on my experience. When you study various charts, you may think you know them, but when you actually start trading, you realize that they don't apply at all. Where on earth did I go wrong?... What I learned after a long time is that I was wrong from the very beginning. - In other words, I realized that my subsequent chart studies were not done properly because I lacked understanding of candles. When you start studying candles, you study candles of various shapes and patterns. At this time, you should not be too obsessed with the names of candle shapes or patterns or the conditions that occur and try to memorize them. It is important to read it repeatedly several times until you can grasp the concept of the arrangements formed by the combination of candle shapes or patterns, that is, the support and resistance points. Eventually, when the candle shapes or patterns are combined, you can find the volume profile section formed around it, that is, the section where trading volume occurs. By drawing and marking the support and resistance points you find in this way on 1M, 1W, and 1D charts, you can create a trading strategy on the charts you mainly trade. That's all the experts in chart analysis say. In the end, everything is about looking at the combination of candles that make up the chart, finding the corresponding support and resistance points, and trading according to your trading strategy. A trading strategy is to create a response strategy at the corresponding support and resistance points based on the three things above: 1. Investment period 2. Investment size 3. Trading method and profit realization method However, since most books do not include trading strategies, you will only learn about the timing of trading and closing of trading using various indicators. Because of this, there are many cases where you cannot respond to the volatility that occurs after starting trading and end up losing money. Even so, it is difficult to specifically define the contents of trading strategies. This is because the investment period, investment size, and trading method are different depending on the individual's investment style. Therefore, what I can tell you is that you need to set the buy, sell, and stop loss points according to the support and resistance points obtained through chart analysis and wait for a while. Due to price volatility, you may not touch the buy, sell, and stop loss points or may move past them. You should learn how to create a trading strategy by modifying the way you respond to these things according to your investment style. - One important thing here is that you should mark the support and resistance points in advance through chart analysis before starting trading. Otherwise, if you start trading and then mark support and resistance points, psychological factors will come into play, which will likely lead to an unexpected transaction. Don't forget this, and you should practice marking support and resistance points in advance before starting a transaction. Also, you should avoid analyzing charts after listening to various articles, news, or community content. The reason is that psychological factors can come into play. - I think trading is a response to the movement of prices that fluctuate in real time. Therefore, waiting and determination are necessary. If you wait too long or do not make a decision and pass it by, there is a high possibility that you will suffer losses or make little profit, so you need something to refer to when waiting or making a decision. That is the support and resistance points I mentioned above. - However, support and resistance points alone do not solve everything. Therefore, you should add trend lines and various indicators to ask for a method of responding to price fluctuations. However, since the trend line is formed by a diagonal line, there is a lack of countermeasure strategies using the trend line. Therefore, the trend line is used to literally find out what the current trend is. - Therefore, when it deviates from the trend line, the movement at the support and resistance points is checked and the corresponding response is made. When trading with a chart consisting of the above two support and resistance points or only the trend line, there are often cases where the transaction cannot be properly conducted due to fakes or sweeps. Therefore, in order to counter these fakes or sweeps, various indicators are added to the chart. The most commonly used of these is the price moving average. Even if you add the price moving average, you realize that it is a curve, just like the trend line, and is therefore not suitable for countermeasure strategies. So, the price moving average is also used to check the trend, just like the trend line. - In that regard, the indicator I recommend is the StochRSI indicator. The default settings for the StochRSI indicator are 14, 7, 3, 3 (RSI, Stoch, K, D). The value of the Signal line (EMA) of the StochRSI indicator is 7. If the StochRSI indicator rises in the oversold zone and maintains the state of StochRSI > StochRSI EMA, it is a buying period. On the other hand, if the StochRSI indicator falls in the overbought zone and maintains the state of StochRSI < StochRSI EMA, it is a selling period. However, you should trade depending on whether there is support or resistance at the support and resistance points formed at that location. Even if there is movement in the StochRSI indicator, it is recommended not to trade if you do not have support and resistance points drawn on the 1M, 1W, and 1D charts. The reason is that you may feel psychologically anxious, so there is a possibility that the trade will proceed incorrectly. - If you can trade with only what I mentioned above and make an average profit, it is because you have established a trading strategy according to your investment style. - We need objective information to establish a trading strategy according to your investment style. We think that this is the only way to minimize the psychological factors that arise when starting a trade. If you can add various indicators to the chart to obtain objective information and receive support and resistance point information according to them, you can create a trading strategy according to them at any time. To do this, we used the StochRSI, OBV, CCI, and RSI indicators to display support and resistance points on the price candle part. And, we added the StochRSI and BW indicators as auxiliary indicators. The StochRSI indicator added as an auxiliary indicator is not the StochRSI indicator provided by default, but an indicator with a modified formula, so you can share the chart and use it or copy and paste the TS-BW UP indicator to your own chart and use it. There is no problem using the basic StochRSI indicator. However, there is a slight difference from what I said, so there may be a slight problem in understanding. - As above, since the support and resistance points of the 1M, 1W, and 1D charts are drawn on the chart to create a trading strategy, my chart is very confusing and not easy to understand when you first look at it. And, since there are many indicators that I have not explained, it may be even more difficult to see the chart. Therefore, to resolve the difficult parts, share the chart, hide the indicators added to the chart, and activate them one by one while looking at them, and you will be able to understand the chart. If you share the chart, you can use it normally, so you can check the chart from various angles. - Have a good time. Thank you. --------------------------------------------------
Education
by readCrypto
1
SPY Daily Chart Analysis: Approaching Key Resistance at $564Looking at the SPY daily chart, the price has recovered well from its recent pullback and is now approaching a significant resistance level around $564. Key Levels: Resistance at $564: The green dashed line highlights this key resistance zone. SPY has tested this level multiple times, and we’re nearing another test. Each time the price approached this zone, it faced rejection, making it a critical level to break for continued upside. Support at $552.49: This is the immediate support zone, and it’s holding strong. Any pullback towards this level would be a natural correction but as long as we stay above it, the bulls remain in control. What I Expect: Potential Breakout: If SPY manages to break and hold above $564, we could see a significant rally, possibly testing higher resistance levels around $570. However, failure to break this resistance might lead to another pullback, with $552 acting as the first major support. Sideways Action: There’s also the chance that SPY could consolidate in the $552 - $564 range before making a decisive move in either direction. This would create a buildup of momentum before the next big breakout or breakdown. Final Thoughts: We’re at a critical juncture. If the bulls can push through $564, we might see a continuation of the larger uptrend. However, resistance here has been strong, so I’ll be watching closely for either a breakout or a rejection at this level. Stay cautious and watch for clear confirmation before making your move.
AMEX:SPYLong
by Deno_Trading
Avanza Breakout: Analyzing the Uptrend and RetestLong-Term Trend Analysis Since its IPO, Avanza has demonstrated a clear uptrend, consistently forming higher highs and higher lows, reflecting a strong bullish sentiment over the long term. Recent Price Action (Weekly Timeframe) On the weekly timeframe, a triangle pattern emerged, which has recently broken out. The price then retraced, suggesting a potential retest of the previous resistance level, which could now act as support. Retest and Key Levels The recent retracement appears to be a successful retest of the previous triangle pattern's resistance. This successful retest often signals a continuation of the upward trend. Examining further, we can see that the previous triangle pattern has now become a critical area for retests, followed by strong upward reactions. This supports the idea that the recent move down was indeed a successful retest. Fibonacci Retracement Analysis Using the Fibonacci retracement tool, the stock's recent reversal aligns perfectly with the 0.618 level, reinforcing its significance as a key support level. This level is often considered a strong area of support in uptrends. Outlook and Potential Patterns After analyzing the chart for patterns and key levels, we can anticipate potential future movements. A key level has been identified, which the stock has respected multiple times. This level could play a crucial role in forming a reversal pattern. Two scenarios could unfold: Inverse Head and Shoulders Pattern: The stock could form an inverse head and shoulders pattern, using the key support level as its neckline. Double Bottom Formation: Alternatively, a double bottom pattern could emerge at the key support level, signaling a strong reversal. Trading Strategy To capitalize on this setup: Conservative Approach: Wait for a clear reversal pattern (like the inverse head and shoulders or double bottom) to form before entering a position. This approach minimizes risk by confirming the trend direction, set a stop loss top minimaze risk. Aggressive Approach: If you believe the stock doesn't require a full reversal pattern, consider entering now. In this case, setting a stop loss just below the key support level is crucial to minimize potential losses.
OMXSTO:AZALong
by Tallblomma
“EUR/USD Gains Weakened”The weakening of the manufacturing PMI and ISM manufacturing PMI figures in the US compared to the previous month has acted as a negative catalyst for the economy. This data has reignited recession concerns in the US, leading to accelerated dollar outflows. In the Eurozone, the manufacturing PMI for August slightly exceeded forecasts at 45.8. In Germany, the manufacturing PMI for August was 42.4, above the previous month’s figure. Following these developments, the EURUSD pair is maintaining prices above the 1.1050 level. In light of these data points, if the index maintains closing prices above the 1.1050 level, buying activity could accelerate towards the 1.1115 and 1.1190 resistance levels. However, in the event of a potential pullback, sell-offs could test the 1.1050 support level and possibly extend to the 1.0965 and 1.090 support levels.
by primequotes
DJI - Key Resistance Zone 4 HourDJI has entered a key resistance zone of the 4 HOUR time frame. There are 3 likely scenarios. A,B,C on the chart. We are waiting for a definitive move on the charts, we are looking for a BREAKOUT, either BIG VOLUME breaking the resistance level, or a REJECTION of the resistance level, followed by great volume. The third move that could be made is ACCUMULATION / RANGING. Where there is little to no volume with no definitive move, we will NOT ENTER if this is the case.
TVC:DJI
by I3ig_Trades
TON → there is no risk for toincoin so farhello guys. Let's analyze OKX:TONUSDT Top Line Resistance: The chart identifies a rising resistance level (top line) that the price has tested multiple times but failed to break above convincingly. A breakout above this line could signal a bullish move. Neckline Support: There is a crucial support level (neckline) that has held up the price so far. The analyst suggests that if the price breaks below this neckline, it could trigger a bearish move. Bearish Scenario: If the price breaks below the neckline, the target for the downside is around the $3.10 level. This level is marked as the "target of breaking down" and could act as strong support if the price reaches it. Bullish Scenario: If the price manages to hold the neckline and breaks above the top line, the chart suggests a potential upward move toward higher levels. Current Price Action: The price is currently around $5.62, showing a potential retest of the neckline. Traders should watch for a decisive move either below the neckline or above the top line to determine the next major trend direction. This analysis outlines the importance of the neckline as a critical level. The outcome of whether the price breaks below this level or holds above it will likely dictate the future trend direction. ___________________________ ✓✓✓ Always do your research. ❒❒❒ If you have any questions, you can write them in the comments below, and I will answer them. ❤︎ ❤︎ ❤︎And please don't forget to support this idea with your likes and comment
by melikatrader94
6
Euro can break resistance level and continue to move upHello traders, I want share with you my opinion about Euro. Observing the chart, we can see that the price some days ago bounced from the support level, which coincided with the support area and support line to the resistance line, forming a gap also. After this, EUR turned around and started to decline to the support line, and some time later it reached this line, breaking the 1.0865 support level. Next, EUR fell lower the support line and entered to upward pennant, where it at once made a strong impulse up to the resistance level, breaking the resistance line and 1.0865 level one more time. After this movement, the Euro turned around from the 1.1000 level and made the correction, after which it started to grow and later reached the support line of the pennant. Then price bounced up to the resistance line, thereby rising higher than the resistance level with the seller zone, but a not long time ago it dropped back to the support line, making a fake breakout of 1.1000 level. But recently price rebounded and started to grow, so, in my mind, the Euro can fall to the support line and then rebound up to the resistance line of the pennant, breaking the resistance level. For this reason, I set my TP at 1.1055 points, which coincided with the resistance line. Please share this idea with your friends and click Boost 🚀
Long
by LegionQ8
2
Gold SellAs we were watching gold very closely and it has broken down its bullish channel and also its global Resistance became Support lately now it has become support become resistance , we have also exprienced heavy news day today and seems like gold has decided it direction as we have seen a Bearish Momentum candle which has broken the support below now we are waiting for a proper price action as retest is almost complete over gold and we will be Bearish again for next week in gold so fingers crossed lets wait and watch
OANDA:XAUUSDShort
by Wakeel_Saab
1
Nordnet: The question is Breakout or Fakeout? OMXSTO:SAVE 's Position: Breakout or Fakeout? OMXSTO:SAVE is currently at a critical juncture, having recently broken out of its long-term bullish channel. The key question now is whether this move represents a genuine breakout with a successful retest or just a fakeout. Monthly Chart Analysis On the monthly chart, we observe that since its IPO in 2020, Nordnet has been in a strong bullish uptrend, defined by two key trend lines. Recently, however, the stock broke through the upper boundary of this bullish channel, raising questions about its next move. Weekly Chart Analysis The weekly chart shows that after breaking through the upper trendline, the stock made a downward move, testing this line as a new support level. This was followed by a strong upward reaction, suggesting a potential retest and continuation of the bullish trend. However, the possibility of a fakeout remains, which could see the stock reverse back down to the long-term support level. Daily Chart: Key Levels On the daily timeframe, several key levels have emerged where the stock has shown significant reactions in the past. These levels—197 SEK, 217 SEK, and 230 SEK—are crucial for determining the stock's future direction. Recently, the stock bounced upward after touching one of these key levels and is currently testing another. Support Line Identification We can also identify a rising support line that the stock has respected, providing additional context for potential future movements. Outlook: What's Next? I anticipate that Nordnet may form a reversal pattern, such as a double bottom or an inverse head and shoulders, with the 217 SEK level serving as the neckline. If this scenario plays out, the stock is likely to resume its upward journey along the rising support line. Trading Strategy For those looking to trade this setup, consider entering a position near the long-term upper resistance line, provided there are confirmations on lower timeframes (e.g., reversal patterns, volume spikes, or indicator signals) that indicate upward momentum. If you suspect this is just a fakeout, it might be wise to wait for a clearer setup. Regardless, be sure to set a stop loss to minimize potential losses.
OMXSTO:SAVE
by Tallblomma