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Resistence

Understanding the Renko Bricks (Educational Article)Today we are going to study a chart which is called a Renko chart. Renko chart is a chart which is typically used to study price movement. I use Renko chart many times to determine supports and resistnace. I find it easy and accurate way of determining supports and resistances. The word Renko is derived from Japanese word renga. Renga means brick. As you can see in the chart below it shows a kind of Brick formation. The brick size is determined wither by the user and mostly it depends of typical average movement on the stock historically. A new brick is formed once the price moves upwards on downwards in the same proportion or ratio of the typical brick. New brick is only added post the price moves in that particular proportion. A new brick might not be added in months if the price movement is not as per the ratio. At the same time a new brick might be added in a day or few bricks in a week is price moves accordingly. We will try to understand this concept further by looking at the chart in the post. We have used the chart of Reliance industries to understand this concept and concept only. Please do not consider this buy or sell call for the stock. As you can see in the above chart I have used a combination of RSI, EMA (50 and 200 days) and Bollinger band strategy. RSI support for Reliance is at 35.89 with current RSI at 40.13. Bollinger band suggests that support might be round the corner for the stock. The peaks from previous tops are used to find out further supports and resistances. Mid Bollinger band level and Bollinger band top level coincide with other pervious tops making them tough resistance when the price moves upwards. Mother line EMA is a resistance now and Father line EMA support is far away. All these factors indicate the support zones for the stock to be around 2736, 2657, 2601 and 2561 in the near term. Resistance for Reliance seem to be at 2814, 2972, 3006, 3048 and 3202 levels. Let me give a disclaimer again. The above data is for analysis purpose and to understand Bollinger band, RSI, effect of EMA and Renko Bricks only. Please do not trade based on the information provided here as it is just for understanding Renko charts. Disclaimer: There is a chance of biases including confirmation bias, information bias, halo effect and anchoring bias in this write-up. Investment in stocks, derivatives and mutual funds is subject to market risk please consult your investment advisor before taking financial decisions. The data, chart or any other information provided above is for the purpose of analysis and is purely educational in nature. They are not recommendations of any kind. We will not be responsible for Profit or loss due to descision taken based on this article. The names of the stocks or index levels mentioned if any in the article are for the purpose of education and analysis only. Purpose of this article is educational. Please do not consider this as a recommendation of any sorts.
NSE:RELIANCEEducation
by Happy_Candles_Investment
Trend lines - how to build them and how to use them?Before we dive into the world of trend lines, I recommend familiarizing yourself with the support and resistance zone Here we go: Trend lines are one of the most universal tools for trading in any market, used in intraday, swing and position trading strategies. Properly drawn on charts, they help to predict the direction of price movement and identify trend reversals. In addition, trend lines help you to accurately determine the optimal entry and exit points, as well as set a stop loss. It is recommended not to rely on trend lines alone, but to integrate them with other methods of technical analysis, expanding your trading arsenal. Often many traders draw too many lines, it is uninformative and useless How to place trend lines on a chart? An uptrend is a combination of at least two pullbacks Similar in a downtrend: Instructions for markings: Find at least two points on the chart Connect them with a line But, let's remember the Axiom: 1. Randomness 2. Coincidence. 3. Regularity Until a trendline is pushed back a third time - it is considered unconfirmed... Once the third bounce has occurred, the line can be considered valid, but does not guarantee that it will necessarily bounce the fourth time! Like all patterns in the market, trend patterns can be drawn on any timeframe, also - they are more effective on older ones (as well as all others) How to use trend lines in your trading? Frequent trades from a trend line are rebound or breakout trades Example: Trendline confirmed (bounced three times) - on the fourth approach we can pay attention - what happens next? Price will either bounce from our trendline again or there will be a breakout Next example: How can we determine whether there will be a breakout or a bounce? As I said before, you need to take into account the context: indicators, price action, nearby levels and so on (it all depends on your psychology) How do trend lines fit together? Support and resistance levels are areas on a chart that indicate potential pressure (on a side) The same principle applies to trend lines. The only difference is that trend lines are sloped rather than horizontal. How to properly label/draw trend lines? Which trend lines are important and which ones should be ignored? Focus only on the major pivot points Connect at least two major pivot points. Adjust the slope of the line to get the most amount of price touching the line, whether it is the shadows of candles or their bodies. Important clarification - trend lines represent a support zone, not specific levels. How can you use trend lines? The trend is our friend. Where the trend goes, so goes we. Trading against the trend is foolish. If you do decide to do it, it must be justified! Trend lines are the direction of the current market. Also the trend line itself can be divided into two positions: If the trend becomes flatter, it means that the market is moving into a state of consolidation If the trend is becoming steeper, it means that the trend is getting stronger (or perhaps it is reaching its climax and is approaching its final stage). Trend Lines Entry Point: Like all other patterns in technical analysis or price action - trend lines can help you find a more favorable entry point in terms of risk-to-reward ratio How to use a trend line to identify a market reversal? Chances are you have encountered this before. There is a trend line breakout, you are already expecting a trend reversal, but the market continues its original movement Like all indicators/patterns - not a panacea. Each strategy has its own risks, just when we add other osnovnopologologayuschih signs to one strategy, the chance of risking a loss - decreases! Technique for determining a trend reversal: Wait for a trend breakout Wait for a lower low/maximum to form. If the price breaks the previous minimum/maximum, most likely the trend will go in the direction of the breakdown...
BINANCE:BTCUSDEducation
by truepersonal
13
Support and Resistance levelsSupport and resistance levels, the bedrock of technical analysis, are fundamental elements. They serve as critical points that delineate potential price movements and are pivotal in decision-making processes for traders and investors alike The basis: There are several fundamental concepts in trading that remain the same over a long period of time. Among them, the concepts of support and resistance levels stand out. When used correctly, support and resistance levels improve trading efficiency in financial markets. Today we will delve deeper into these concepts. Price behavior: The fundamental principle of price behavior lies in the concept of supply and demand, governing the existence and operation of any market. When demand outweighs supply, it prompts an upward push in prices, while in reverse circumstances, a decrease is observed. By identifying levels of supply and demand, traders significantly enhance their success rate. A support level indicates a price range where strong buying positions are concentrated, typically defined by two minimum price points. A resistance level, conversely, denotes a price range around which strong selling positions are clustered, often marked by two maximum price points. It's important to note that support and resistance levels should not be viewed as precise lines. Prices may not necessarily adhere to these levels point by point; often, they may not even touch the level directly, sometimes piercing through it. This variability is normal, so these levels should be perceived more as zones of support and resistance. The width of these zones can vary, with the magnitude of dispersion dependent on the timeframe in which trading occurs. The higher the timeframe, the potentially broader the range of support and resistance levels. Once again for strengthening: Support and resistance levels represent specific price ranges on a chart (often represented by rectangles in my analysis) where the direction of price movement has historically changed. These ranges attract traders' attention because they provide clear points for setting stop losses and entering trades. In addition, these levels usually attract large buyers or sellers whose limit orders contribute to market dynamics. Essentially, the level denotes the price area in the market where traders perceive the price to be either overpriced or underpriced, depending on the prevailing market conditions. Therefore, it is extremely important to closely monitor key levels where the role of support and resistance has changed or where significant price reversals have occurred. Blending levels signify pivotal points on a price chart where price action can prompt a reversal in the opposite direction. In the presence of a robust trend, price movements may penetrate through these supply and demand levels, leading to potential shifts in direction. Such occurrences typically coincide with heightened transaction volumes. The interplay of price adjustments, heightened market activity, and trading volumes collectively influence market direction. When resistance is breached and the price retraces to its previous level, there's a likelihood that bulls will once again push it upwards. Conversely, if the price retraces to the breached level after breaking through support, bears are likely to actively drive it downwards. Support and resistance levels can be identified as areas in the market where traders are more inclined to buy or sell, depending on current market conditions. This creates a zone of collision between buyers and sellers, often prompting the market to change its direction. Retest: A retest of a level refers to a brief return of the price to the breached support or resistance line for testing purposes. Following the retest, the price typically continues its movement in the direction of the breakout. On higher time frames, support and resistance levels become more powerful: It is important to observe the price action around levels: If the price swiftly reverses from a level into the opposite trend, it indicates significant importance of that level. If the price tests a specific area multiple times with minor retracements, it's likely that the level will eventually be breached. Swing zones refer to areas where the price retraces to the previous pullback in either a downtrend or uptrend. In less robust trends, the price tends to return to the boundary of the previous correction before continuing its movement. Of course, support and resistance are dynamic concepts that require constant attention and analysis as their meaning changes depending on prevailing market conditions. Moreover, it is critical to consider multiple confirmations such as volume analysis and breakouts to confirm the strength of these levels. Thank you for your attention!
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Education
by truepersonal
26
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
The Power of Candlestick Encapsulation in Trading: Utilizing theTrading is a captivating and intricate field that demands a profound understanding of financial markets, investment strategies, and technical analysis. Among the many techniques employed by traders, candlestick encapsulation is one that can prove to be particularly powerful. In this article, we will explore the concept of candlestick encapsulation and how one can harness the 50% of the first candle's length as a potential support or resistance level. What Is Candlestick Encapsulation? Candlestick encapsulation, also known as an "inside bar," is a price pattern that occurs when a subsequent candle develops within the boundaries of the preceding candle. In other words, the price range of the second candle is entirely contained within the range of the first candle. This pattern can appear on any time frame, from daily candles to one-minute candles, and is often used by traders to identify potential turning points in the markets. How to Identify Candlestick Encapsulation? To identify candlestick encapsulation, follow these steps: * Examine the First Candle: Begin by observing the most recent candle on your price chart. This will be the "mother candle."
 * Take a Look at the Next Candle: Next, examine the candle that follows the mother candle. This candle should have a price range that is completely contained within the range of the mother candle.
 * Confirm the Pattern: To confirm candlestick encapsulation, the second candle must close within the range of the mother candle. Using the 50% Level as Support or Resistance Now that we understand what candlestick encapsulation is, let's explore how to leverage the 50% of the first candle's length as a potential support or resistance level. * Calculate the Length of the First Candle: Measure the length of the mother candle from its high to its low.
 * Calculate 50% of the Length: Now, calculate exactly 50% of this length. You can do this by adding the high and low of the mother candle and dividing by two.
 * Draw the Horizontal Line: Plot a horizontal line on your price chart at the level you calculated as 50% of the mother candle's length.
 * Observe Price Behavior: This horizontal line represents a potential support level if prices move below it or a resistance level if prices stay above it. Observe how prices react when they reach this level. Interpretation and Strategy The use of the 50% level of the mother candle's length as support or resistance can be applied in various trading strategies. Here are some important considerations: * Breakout Strategy: If prices break above the 50% level, there may be a potential bullish breakout. In this case, traders may look for buying opportunities.
 * Pullback Strategy: If prices return to the 50% level after a breakout, this could be an opportunity to enter positions in the direction of the prevailing trend.
 * Stop Loss and Take Profit: Traders can use the 50% level as a reference point to place stop-loss or take-profit orders. Conclusion Candlestick encapsulation is a technical analysis technique that can provide valuable insights into potential turning points in financial markets. By using the 50% level of the mother candle's length as support or resistance, traders can add another tool to their trading toolkit for making informed trading decisions. However, it is important to remember that no technique is foolproof, and trading always involves a degree of risk. Therefore, it is advisable to combine this technique with careful risk management and a solid understanding of financial markets.
OANDA:XAUUSDEducation
by AleSaira
Look for support and resistance lines to help with daytradesI'm looking for a DT entry here on AMD but instead of entering prematurely and hoping it goes up, I'm waiting for bullish confirmation that will happen if bulls reclaim the resistance and use it as support. Meaning, it should shoot above resistance, then dip down to that line as SUPPORT. That would be my ideal entry. Watch to see what happens here. Good learning experience even if you are not in the trade. You are welcome to use volume and moving averages to assist you with your entries. NASDAQ:AMD
NASDAQ:AMDEducation
by kingdips
SUPPORT & RESISTANCE Hey Everyone, Support and resistance is one the most talked about price action component when it comes to technical chart analysis. What is support and resistance? Support and resistance are areas where price fails to continue to rise or drop. Historical areas of rejections create levels of support and resistance. These levels are expected to stop price from a continuation. - SEE EXAMPLE BELOW How can we use support and resistance? Support and resistance levels can be used to take trades from and to close trades on. We will cover the basics of drawing the levels and also identifying rejections and breakouts using support and resistance levels. First and foremost traders draw support and resistance in many different ways. We will cover one of the methods we use to support our signals and trades, which is called "CANDLE BODY CLOSE" See examples below on how to draw the levels, identify rejections and also the breakout strategy. CANDLE BODY CLOSE SUPPORT AND RESISTANCE Failure to close above a level with the candle body forms level of resistance and failure to close below a level with the candle body forms support. Also areas of rejections. CANDLE BODY CLOSE BREAKOUT A candle that is able to close above a resistance or below a support level with the body and not just the wick confirms a breakout of the level for a continuation. This is a fantastic simple way to chart support and resistance levels, that can also be used to support entries and exits by identifying the wick rejections and the candle body breakouts. As always, we will continue to share our chart ideas and useful educational tips for traders. Please don't forget to like, comment and follow to support us, we really appreciate it! GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
14
📊 Navigating The Trading Range📌What Is a Trading Range? A trading range is a period during which an asset consistently fluctuates between high and low prices. The upper limit of the range acts as a resistance level, meaning it tends to hinder further price increases. The lower limit of the range serves as a support level, providing a barrier against significant price declines. When an asset breaks through or falls below its trading range, it usually means there is momentum (positive or negative) building. A breakout occurs when the price of a security breaks above a trading range, while a breakdown happens when the price falls below a trading range. Typically, breakouts and breakdowns are more reliable when they are accompanied by a large volume, which suggests widespread participation by traders and investors. Many investors look at the duration of a trading range. Large trending moves often follow extended range-bound periods. 📌Support and Resistance If an asset is in a well-established trading range, traders can buy when the price approaches its support and sell when it reaches the level of resistance only if there is confluence and signs for it. Using volume is a good indication of spotting continuation or reversals. If the price is approaching a support level with high sell-side volume, its a good indication it might just break down and continue the downtrend to the next support zone. You can define major support/resistance zones where there was clear reaction in the past and use them as major pivots to guarantee safer entries. Always remember two key things about S/R. The first is, the more times a S/R zone is tested the higher the change a breakout/breakdown will occur. Once a S/R breaks, it will automatically turn into the opposite of what it was, the price break out of the resistance and range above. That previous resistance will act as a support level next time the price action touches it. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
6
⭐️ Support And Resistance | Definition & Strategies ⭐️Support and resistance levels are fundamental aspects of trading, holding significant importance in various financial markets, including the dynamic forex market. These critical levels signify specific price zones on a chart where buyers and sellers actively participate, exerting influence on market movements. Consequently, comprehending the impact of support and resistance levels is crucial for traders seeking to make well-informed decisions and capitalize on trading opportunities. This comprehensive article aims to explore the significance of support and resistance levels, delve into methods of correctly identifying and drawing them, outline effective trading strategies, and present techniques for filtering out false signals. Armed with a comprehensive understanding of these concepts, traders can elevate their trading proficiency, potentially leading to improved profitability and success in the forex market. Support and resistance levels act as psychological barriers, reflecting the collective behavior of market participants. Support represents a price level where buying pressure tends to overcome selling pressure, causing prices to reverse direction and rise. On the other hand, resistance signifies a price level where selling pressure typically surpasses buying pressure, leading to price reversals and declines. These levels are formed based on previous market reactions, such as historical highs and lows, trendlines, and chart patterns. Traders consider support and resistance levels as critical reference points, as they help identify potential entry and exit points, define risk and reward ratios, and anticipate market reversals or continuations. To accurately identify and draw support and resistance levels, traders employ various techniques and tools. One popular method is the swing high and swing low approach. Traders identify significant peaks (swing highs) and troughs (swing lows) on a price chart and draw horizontal lines connecting them. These lines act as reference levels, indicating potential areas of support and resistance. Additionally, trendlines can be utilized to identify dynamic support and resistance levels, providing insights into the overall market trend. Once support and resistance levels are identified, traders can implement effective trading strategies to capitalize on these market dynamics. One common approach is to buy at support and sell at resistance. When prices approach a support level, traders anticipate a price bounce and look for buying opportunities. Conversely, when prices approach a resistance level, traders expect a potential price reversal and consider selling or shorting the asset. This strategy allows traders to enter trades with favorable risk-reward ratios, aiming to capture price movements away from support or resistance levels. What is it exactly a Support and Resistance ? Support and resistance levels represent crucial price clusters where buyers and sellers engage in competition. A support level denotes a specific price point where the demand for an asset becomes sufficiently strong to halt further declines in its value. As the price approaches the support level, it is reasonable to expect an increase in buyer activity and a decrease in seller activity, resulting in higher buying volume and reduced selling volume. When the price reaches the support line, there is a high likelihood of a rebound occurring, as this line establishes a significant psychological low within the market. Support levels essentially "support" the price, preventing it from continuing its downward trajectory. It's important to note that support and resistance levels are not fixed points. Prices may approach these levels with slight deviations, either falling just short of reaching them or temporarily dipping slightly below the line. If the price successfully breaks through the support line and proceeds to decline, it undergoes a transformation and assumes the role of a resistance level. Use of the Resistances on Bearish trend. Use of The Supports on Bullish trend. Use of Support and Resistance on Sideways / Range market. Resistance levels are the opposite of support. These marks appear when supply becomes equal to demand. The logic here is that as the resistance level is approached, the volume of buyers decreases, while the volume of sellers gradually increases. At the point where the balance is reached, the price will stop, and further growth will stop. The resistance level is always above the price. The name also speaks for itself. This mark is as if restraining the price from further growth by resisting it. How To Trade On Support And Resistance Levels: Trading based on support and resistance levels is a popular approach within the forex trading community. These levels represent specific areas on a price chart where the market tends to reverse or consolidate, presenting potential opportunities for buying or selling. To effectively trade support and resistance levels, follow these steps: - Identify significant support and resistance levels: Analyze historical price data to locate areas where the price has previously reversed or encountered difficulty in breaking through. This can be done by observing swing highs and swing lows, trendlines, Fibonacci retracement levels, or horizontal price levels. - Mark the identified levels on your chart: Once you have identified key support and resistance levels, mark them on your chart. This visual representation helps you recognize the areas where potential trading opportunities may arise. - Monitor price reactions: Keep a close eye on the price as it approaches the support or resistance levels. Look for indications of a potential reversal or a breakout from the level. These indications can include candlestick patterns, chart patterns, or the signals from indicators that suggest a shift in market momentum. - Confirm with additional indicators: While support and resistance levels can be traded on their own, it can be beneficial to use supplementary indicators or tools to validate your trading decisions. For instance, you can employ oscillators like the Relative Strength Index (RSI) or the Moving Average Convergence Divergence (MACD) to assess overbought or oversold conditions. - Define your entry and exit points: Once you have identified a potential trading opportunity based on support and resistance levels, establish your entry point, determine a suitable Stop Loss level (to limit potential losses), and set a take-profit level (to secure profits). Technical analysis, such as considering the distance between the entry point and the nearest support or resistance level, can help determine these levels. Manage your risk: Proper risk management is crucial when trading support and resistance levels. Consider implementing appropriate position sizing, setting Stop Loss orders to protect against excessive losses, and maintaining a favorable risk-to-reward ratio. This approach ensures that even if some trades are unsuccessful, your overall trading strategy remains profitable. Practice and refine your strategy: Mastery of support and resistance trading comes with practice and experience. Begin by testing your approach on a demo account or using backtesting software to evaluate its performance based on historical data. Refine your strategy based on your observations and gradually build your confidence. Support And Resistance Trading Strategies Support and resistance trading strategies offer various approaches to capitalize on price dynamics around these key levels. Here are several common strategies employed by traders: Breakout Strategy: This strategy involves trading the breakout of support and resistance levels. When the price surpasses a resistance level or falls below a support level, it indicates a potential continuation of the prevailing trend. Traders can initiate a long position after a resistance breakout or a short position following a support breakdown. Setting a Stop Loss order below the breakout level helps manage risk. Bounce Strategy: With the bounce strategy, traders anticipate price bounces off support and resistance levels. When the price approaches a support level, traders can enter long positions, placing a Stop Loss order below the support level. Conversely, when the price nears a resistance level, traders can go short, setting a Stop Loss order above the resistance level. The expectation is that the price will reverse from these levels, presenting profitable trading opportunities. Range Trading: Range trading occurs when the price fluctuates between a support and resistance level. Traders can exploit this by buying near the support level and selling near the resistance level. To enhance range trading, traders identify the range boundaries and employ technical indicators such as oscillators to assess overbought and oversold conditions within the range. Pullback Strategy: In this strategy, traders wait for the price to retrace to a support or resistance level after a breakout. The idea is to enter trades in the direction of the breakout once the pullback is complete. For instance, if the price breaks above a resistance level, traders wait for a pullback to the support-turned-resistance level before initiating a long position. Confluence Strategy: This strategy combines support and resistance levels with other technical indicators or chart patterns to increase trading probabilities. Traders search for instances where multiple factors align, such as a support level coinciding with a trendline or a Fibonacci retracement level. This convergence of factors strengthens the signal for potential trading opportunities. How To Filter False Signals ? Filtering out false signals when trading support and resistance levels can indeed be challenging. However, there are several strategies you can employ to increase your accuracy and minimize the impact of false signals. Here are some helpful tips: - Confirm with multiple indicators: Relying on a single indicator can lead to false readings. To enhance the reliability of your analysis, consider using multiple indicators that complement each other. Look for indicators that align with your support and resistance levels, such as trendlines, moving averages, or oscillators. When multiple indicators converge and provide consistent signals, it strengthens the confirmation for potential trading opportunities. - Analyze price action: Study how the price behaves around support and resistance levels. Look for clear and decisive price movements, such as strong breakouts or bounces, accompanied by significant volume. False signals often exhibit choppy or erratic price action, lacking conviction. By analyzing price action, you can gain insights into the strength or weakness of support and resistance levels. - Consider multiple time frames: Analyze support and resistance levels across different time frames. Levels that hold on higher time frames carry more significance. Focus on levels that align and hold on multiple time frames, as they are more likely to attract market participants and generate reliable signals. The confluence of levels across different time frames increases the validity of the signals. - Monitor the market context: Consider the broader market context, including the overall trend, market sentiment, and significant news or events. Support or resistance levels that align with the prevailing trend and market sentiment are more likely to generate valid signals. Conversely, levels that conflict with the trend or market sentiment may produce false signals or indicate potential reversal points. Understanding the market context can help you filter out false signals. - Be patient and selective: Avoid jumping into trades based on every touch of a support or resistance level. Exercise patience and wait for strong confirmation signals before entering a trade. Look for price rejections, candlestick patterns, or breaks with high volume and momentum. Being patient and selective in your trades increases the probability of accurate signals and minimizes the impact of false signals on your trading. - Implement proper risk management: Effective risk management is crucial to mitigating the impact of false signals. Set appropriate Stop Loss orders to limit potential losses if a trade goes against you. Consider using Trailing Stops to protect profits as the trade moves in your favor. By managing your risk properly, you can protect your trading capital and minimize the adverse effects of false signals on your overall trading performance. By incorporating these strategies into your trading approach, you can enhance your ability to filter out false signals and increase your accuracy when trading support and resistance levels. Remember to practice, adapt to changing market conditions, and continuously refine your trading strategy. Conclusion : Support and resistance levels are crucial elements in the forex market, exerting a significant influence on price movements and market dynamics. These levels represent areas where supply and demand imbalances occur, leading to trend reversals, consolidations, breakouts, and impacting market psychology. Correctly identifying and drawing support and resistance levels is vital for traders as it helps them identify potential buying and selling opportunities. Traders can utilize various trading strategies to capitalize on these levels. Breakout strategies involve trading the breakouts of support or resistance levels, while bounce strategies focus on trading price bounces off these levels. Range trading strategies take advantage of price oscillations within established support and resistance boundaries, while pullback strategies involve trading in the direction of the breakout after a price retracement. However, it's essential to filter out false signals to avoid erroneous trading decisions. This can be achieved by using multiple indicators that complement each other and provide confirmation signals. Analyzing price action helps in understanding the strength or weakness of support and resistance levels. Considering different time frames allows traders to identify levels that hold significance across various intervals. Assessing the broader market context, including the overall trend and market sentiment, helps to avoid false signals that conflict with the prevailing market conditions. Additionally, exercising patience and selectivity when entering trades ensures that traders wait for strong confirmation signals before taking action. Implementing proper risk management techniques, such as setting appropriate Stop Loss orders and employing position sizing strategies, protects traders from excessive losses and manages risk effectively. By incorporating these principles into their trading approach, traders can navigate the complexities of support and resistance levels and increase their chances of success in the forex market.
Education
by FOREXN1
18
📊 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
2
How to determine a breakout level ?A breakout occurs when the price of an asset moves above or below a significant level of support or resistance. For traders, identifying a breakout can be a profitable opportunity to enter or exit a trade. Here are some steps to help you identify a breakout: Identify the key support or resistance level - This is usually a level where the price has previously bounced off several times. Look for a strong momentum in the direction of the breakout - This can be indicated by a sudden increase in volume, or a significant move in the price. Wait for the breakout confirmation - This is when the price moves decisively above or below the support or resistance level. Confirm the breakout with other technical indicators - Use other technical indicators, such as moving averages or trend lines, to confirm the breakout and determine the strength of the trend. Place your trade - Once you have confirmed the breakout, you can enter a long or short position, depending on the direction of the breakout. Remember that not all breakouts are successful, and it's important to use proper risk management techniques, such as setting stop-loss orders, to limit your losses in case the trade goes against you.
Education
by CScalp_EN
Support and Resistance Explained WHAT IS SUPPORT AND RESISTANCE Trading support and resistance is like playing a game of tug-of-war between buyers and sellers in the market. Imagine a group of people trying to pull a rope from opposite sides. If one side is stronger, they will pull the rope in their direction. In trading, the buyers and sellers are like these people pulling on the rope. Support is like the floor of a room. It's the level at which the buyers come in and start buying a stock, because they believe that the price won't go lower than that level. So, if the stock price drops to the support level, it's like the buyers have put a floor on the price and won't let it go lower. Resistance is like the ceiling of a room. It's the level at which the sellers start selling a stock, because they believe that the price won't go higher than that level. So, if the stock price goes up to the resistance level, it's like the sellers have put a ceiling on the price and won't let it go higher. Traders use support and resistance levels to make decisions about when to buy or sell a asset. If the price is approaching a support level, a trader might decide to buy the asset, because they believe that the buyers will come in and push the price back up. On the other hand, if the stock price is approaching a resistance level, a trader might decide to sell the stock, because they believe that the sellers will push the price back down. Remember, support and resistance levels are not always exact, and the asset price can break through them if there is enough buying or selling pressure. But they can still be useful tools for traders to make informed decisions. Identifying Support and Resistance 🔷Look for areas where the price has previously turned around: This is one of the most common methods to identify support and resistance levels. You can look at a price chart and identify areas where the price has bounced back from in the past. These areas can become support or resistance levels in the future, depending on the direction of the price movement. 🔷Use trend lines: Trend lines are lines drawn on a price chart that connect the highs or lows of the price movement. A trend line connecting the higher highs can be a resistance line, while a trend line connecting the lower lows can be a support line. 🔷Pivot points: Pivot points are calculated using the previous day's high, low, and close prices. These levels can act as potential support and resistance levels for the current day's trading. You can find pivot point using Tradingview built in "More Technicals tools" 🔷Moving averages: Moving averages are used to smooth out the price action and identify the overall trend. They can also act as support or resistance levels, depending on where the price is in relation to the moving average. 🔷Fibonacci retracements: This method uses Fibonacci ratios to identify potential support and resistance levels. The levels are calculated by dividing the vertical distance between two significant price points by the key Fibonacci ratios (38.2%, 50%, and 61.8%). It's important to note that support and resistance levels are not exact and can sometimes be broken. So, it's essential to use other indicators and confirm the levels before making any trading decisions. Here are some other key facts about support and resistance that you may find useful: 🔸Support and resistance levels can switch roles: When a support level is broken, it can turn into a resistance level, and vice versa. For example, if a stock price breaks through a resistance level, that level can become a support level for future price movements. 🔸Multiple support and resistance levels can exist: A price chart can have multiple support and resistance levels at the same time, depending on the time frame and the volatility of the market. Traders can use different levels to make informed decisions about buying or selling a stock. 🔸Volume can confirm support and resistance levels: High trading volume at a support or resistance level can confirm its validity. For example, if a stock price bounces off a support level with high trading volume, it's a sign that there is buying pressure at that level. 🔸Support and resistance levels are not exact: As I mentioned earlier, support and resistance levels are not exact and can be broken. Traders should use other indicators, such as trend lines, moving averages, and candlestick patterns, to confirm the levels before making any trading decisions. 🔸Support and resistance levels can be influenced by external factors: Economic events, news releases, and market sentiment can also influence support and resistance levels. For example, a positive earnings report can break through a resistance level, while negative news can break through a support level. Traders should keep an eye on these external factors to adjust their trading strategies accordingly.
Editors' picks
BITSTAMP:ETHUSDEducation
by ChristopherDownie
24
FLSY - Anatomy of a "Good" tradeHi All, This is just to share on how I would approach a trade (as a trader). 1. Look for signs that the stock is forming a bottom (rounded bottom, inverted Head and Shoulders, Adam and Eve), rising above 200 day MA, Golden Cross etc. 2. Check out its longer term charts (ie weekly and monthly) as you will likely see a clearer picture of it's direction. 3. Wait for some triggers (eg breaking above neckline especially on strong volume). FLSY is a good example and had presented several good opportunities for several short term trades recently (could be held for longer term if one had entered earlier around 12.36 (1st Entry in chart) and didn't get stopped out. 1) On 2nd Feb (Initial Breakup), it gapped and broke up above this neckline (as well as it's 200 day MA), everything looks good except volume was just above average. Well, this initial break up failed! Yes, it happens more often than we cared for, especially during the earlier phases of the trend, hence a conservative trader would prefer to wait for a pullback and long if the neckline proved to be a support. 2) on 13 Feb (1st Entry), FSLY once again gapped above the neckline and 200 day MA, but this time the volume was HUGE. However, this was prior to earnings announcements (2 days later, AMC). There is a possibility that earnings beat had been leaked, so if one decide to enter this trade, then it would probably be wise trade small. 3) on 16 Feb (2nd Entry), the day after earnings, which beat expectations (surprise surprise...LOL), many traders will FOMO into the stock especially as it rose above the previous candle's high around 14.20. This turned out to be a very profitabe trade (intraday). Next day however, it formed a "Harami" candlestick (aka "inside bar"), showing indecision at this point. I would raise the stop to 15.30, slightly just under this "Harami" candlestick (which is already a 11% SL from its high @ 17.18). Those with a larger risk appetite could raise the stop to entry price (ie 14.20), allowing for larger volatility which could stop one out prematurely but be prepared to give back all profits if wrong. 4) FSLY had a steep pullback after all (due to poor market sentiment during the whole month of Feb) and found support only at 61.8% of it's large AB up swing. This was also within a prior "Resistance" but turned "Support" zone. It began to form small sideway candles (a signal to long if it starts to break above this "consolidation" range) 5) We had a Long trigger again last Friday (3rd Entry) as the stock started to rise decisvely above the consolidation high @ 14.20. It turned out to be a large candle day, hence I would place initial stop loss just below this large candle (ie 13.55, a 5% initial SL). There is a good chance this stop will not get hit (although nothing is guaranteed LOL). Uptrend is underway for FSLY (above 200 day MA, with the shorter MAs (20 and 50) both rising. However, it could still experience large swings along the way and one has to manage the trade and raise the stops from time to time to protect profits. Just because one is stopped out does not mean the stock is spent. Sometimes it could be just periods of consolidation (short or long periods). Keep it on your watchlist as long as the stock has not shown signs of bearishness on a higher timeframe, set alerts for the next trigger. Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
NYSE:FSLYEducation
by Juliac
1
4 COMMON YET EFFECTIVE TRADE ENTRIESHappy Chewsday, traders! Some of you reached out and asked for more educational articles and we’re here to deliver. Relatively simple but important topic of entries is going to be lightly covered today. The image above should be pretty self-explanatory, but to cover it in more details: There are 4 main entry types. - Range fadde is when we buy the bottoms and sell the tops of the range. Usually the box/rectangle isn’t large, so the risk-reward ratio is just not there for many traders. However, you can definitely put the stop loss a few pips out of the range and maximize the ratio. - Reversal is an entry at the most recent extreme, key level. Quite popular approach, but personally, it usually goes against our fight club rule #1: “never fight the trend, he’s your friend”. We do; however, look out for multi-day/week key levels in our ideas as well. - Breakout is an entry as the price breaks out of a range or any pattern. Very reliable option for beginners that are obsessed with finding repetitive reoccurrences in the market. For example, you can sell at the neckline of head and shoulders pattern and successfully profit from that. It is important to keep in mind that, the more complicated patterns you “notice”, the less people use them, thus, devaluing the importance of it. - Pullback is an entry after a minor reversal or retest. Statistically speaking, this is one of the most frequent entries utilized by us. It’s simple and you still follow the trend. Draw your key points, look for proper Fibonacci levels and make sure it’s not a complete trend reversal. Of course, you’ll miss out on a few pips this way, but this might change your long-term profit statement. What’s your favorite entry type?
BITSTAMP:BTCUSDEducation
by Investroy
14
Importance of resistance and long-term chartsI just had to pop this chart on here this morning – it is the CBOT monthly wheat chart. It demonstrates that no matter what your time frame that it is important to look at long term charts and it also demonstrates the importance of resistance. There are two resistance points to mention on here – the first is the 1349 2008 high and the second is the shallow parallel line I have drawn, which connects the 1977 low and the 2000 low. I shifted this line up to connect to the 1349 2008 high and this provided resistance at 1373. The market tested these twin perils in March and failed miserably. The mid-point of this range is about 810 and this where I suspect the market will head. Disclaimer: The information posted on Trading View is for informative purposes and is not intended to constitute advice in any form, including but not limited to investment, accounting, tax, legal or regulatory advice. The information therefore has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Opinions expressed are our current opinions as of the date appearing on Trading View only. All illustrations, forecasts or hypothetical data are for illustrative purposes only. The Society of Technical Analysts Ltd does not make representation that the information provided is appropriate for use in all jurisdictions or by all Investors or other potential Investors. Parties are therefore responsible for compliance with applicable local laws and regulations. The Society of Technical Analysts will not be held liable for any loss or damage resulting directly or indirectly from the use of any information on this site.
CBOT:ZW1!Education
by The_STA
1
A simple strategy for low timeframesHello, good morning, I want to introduce a simple strategy to those who trade in low frame time. For example, I'm on the Dow Jones chart for 5 minutes at a time frame Take a closer look at this backtest You must first find support and resistance levels In the next neighbourhood, be patient until the price hits that level Now wait for the first candle to form relatively independently of that surface By independent candlestick, I mean to see a candlestick that starts to form without contact with the surface and closes in such a way that it does not come into contact with that surface again. A candle that has no contact with the desired surface either at the beginning or at the endpoint. We can now expect the price to move with the size of the independent candlestick length. simply To better understand, watch the image or ask a question after watching it. I should mention that i always consider one unit of profit and one and a half units of loss
UEducation
by ali5adeghi
2
A Channel pattern - EducationalA channel is a chart pattern. And uses trendlines. A channel indicates an entry and a possible exit. It can also control the risk. A channel consists of two parallel lines, between which the price moves. Drawing a channel: Ascending channel - During an uptrend, draw the basic up trendline along the lows. Then you draw a line from the first peak which runs parallel to the basic up trendline, these lines now form a channel. If the 2nd peak reaches the upper line of the channel a channel can be said to exist, but a third test of the trendline is always needed to see if the trendline is really accepted. Descending channel - During a downtrend draw the basic down trendline along the highs. Then draw a line from the first bottom which runs parallel to the basic down trendline, these lines now form a channel. If the 2nd bottom reaches the bottom trendline a channel can be said to exist, but a third test of the trendline is always needed to see if the trendline is really accepted. Horizontal channels are like rectangles, they are called trading ranges. How to profit from this pattern? Short term (uptrend) A long position could be opened when the price is at or near the basic up trendline. One could even open a short position when the price is at the top of the channel, but beware! Going against the trend can have negative consequences. Short term (downtrend) A short position could be opened when the price is at or near the basic down trendline. A long position can even be opened when the price is at the bottom of the channel, but beware! Trading against the trend can have negative consequences. Try to take profits the moment the price, comes close to the trendline on the other side, you could thus switch your position from Long to short and visa versa. Remember, the higher the timeframe you use the more reliable the trendlines become, also a trendline is more reliable if the trendline has been tested often. Trading the channel breakout The failure to reach a channel line is often an early warning that the channel line on the other side will be broken. Once a channel is broken a move of around the width of the channel can be excepted. So a larger channel usually have bigger profit potential. You can use certain technical indicators with a channel, for example 'volume', pay attention to whether the volume increases the moment the price breaks out of the channel, if this is not the case it means that the channel is probably still intact. Profit targets and a Stop-loss As I already mentioned the intention is to take profit the moment the price is on the other side of the channel. Imagine this: There is an ascending channel, the price is moving around the basic up trendline (base line), then you can enter a long position. Then the price is moving towards the upper trendline of the channel and you can take your profit. If you like you can take a short position here, but beware! Trading against the trend can be dangerous. But where is your stop-loss? I already said it many times: always place a stop-loss before you forget it and before you start doing other things! In the preceding example you place this stop-loss just below the base line at the long position, keep a little space between the base line and your stop-loss! It could happen that the price breaks through the channel lines on an intra-day basis, but only when the price closes outside the channel line this could be a sign of a breakout. For the short position from the above example, place your stop-loss just above the upper trendline, with some distance in between. Here are more examples: I wish you all the best! This is no financial advice. BITSTAMP:BTCUSD
BITSTAMP:BTCUSDEducation
by StijndeVries
2
How to draw Support and Resistance for GoldAs promised alongside our analysis and reports we will also be posting basic educational posts to help newcomers. Today we show how to draw support and resistance lines the GoldView way. There are so many ways to draw and establish support and resistance lines. Typically this is an area where price stabilizes and fails tp break. Visually this can be represented by drawing a line to identify those areas. This can be drawn and identified in different ways. The 3 ways we draw support and resistance are as follows; Firstly we identify where price is stabilized, this is likely to show a collection of candles side by side or by a candle or wick touch to a price and then a big retracement. 1 - We draw a line on the top or bottom of the candle body close of an area price fails to break. Typically the highest or lowest wick from the collection of candles. 2 - We draw a line on the top or bottom of the candle body close of an area price fails to break. Typically the highest candle from collection of candles. 3 - We identify the turning point of our moving average line (EMA5 IN OUR CASE). We then draw a line on the top or bottom of this turn. Please support us with your likes, comments and do follow us for upto date analysis on the gold market. Goldview
OANDA:XAUUSDEducation
by Goldviewfx
13
Indicator introduction: Custom Volume - Periodic Peaks & TroughsThis script is a custom volume indicator with additional features. But why is this useful? The minimum and maximum volumes, in different time periods, are displayed by labels below the bars. I call them "Peaks" and "Troughs"(Hover your mouse cursor over the labels to see more details) These parameters are widely used in technical analysis . If traders want to confirm a reversal on a level of support–or floor–they look for high buying volume . Conversely, if traders are looking to confirm a break in the level of support, they look for low volume from buyers. If traders want to confirm a reversal on a level of resistance–or ceiling– they look for high selling volume . Conversely, if traders are looking to confirm a break in the level of resistance, they look for high volume from buyers. How to use alerts Note that by creating an alert, an instance of the indicator, with all your settings, will be activated on the site's server and alerts will be triggered by it. After that, changing the indicator settings on the chart will no longer affect the alert. Open the settings window and select the alert conditions as you wish Click the Create Alert button (or press the A key while holding down the ALT key) In the Condition section, select the name of the indicator. Make the rest of the settings as you wish. Finally, click on the Create button. It's finished. After a few moments, your alert will be added to the Alerts menu.
Editors' picks
BITSTAMP:BTCUSDEducation
by BobRivera990
51
Explained Supports Resistors and Trend, Guide part 11Supports,Resistors and Trend First of all say that all the forms of Supports and Resistances mentioned in this guide are based on my personal experience, there are several ways to really see it, but you can take it as you wish. This topic is broad, and it is not based on the use of a tool, I consider that the tools are good enough to give you ideas, but it all depends on the psychological of both institutional and retail investors, points where they want to buy. Obvious points they want to get into. Knowing this, let's get started. What is a Support? Support is that psychological zone where retailers and institutions believe that the price would have a good maintenance of its price. (Shopping area). What is a resistor? Resistance is that area where retailers and institutions believe that the price will have a maximum peak to initiate a fall. What are trends? A trend is a movement, whether bullish or bearish, Side of the asset which we are reviewing. Identifying them is usually quite simple. • Lateral Trend: Range Zone between a Maximum and Minimum price. • Bullish Trend: Bullish zone marking new highs of highs and lows. • Bearish Trends: Corrective Zone marking new resistance and lower lows. Trends: 1- Bullish trend: This is an upward trend, quite obvious, in this type of trend the price tends to make new highs and mark higher lows. As long as it does not break the trend we could join it looking for new highs. Example: NDAQ, 04 Mar 2021, Bullish. 2- Bearish Trend: The downtrend tends to seek higher lows, it is also easy to identify on the chart. Example: BTC, 1 week Chart. 3- Lateral Tendency: It is usually an area in which the price is in a range. BTC, 31 Jul 2020 to 03 Sep, Start Bearish Trend. Already handling these concepts let's go to topics of Supports and Resistances a little clearer. False Trend Breaks: 1- GAP: A gap is an empty space. This empty space can be explained as follows: What is a gap? A gap is called a gap in the continuity of the price line with respect to time. It occurs when the price experiences a marked movement up or down without any operations between the previous price and the current price. Gaps occur for various reasons, from market buying and selling pressures to important publications of economic data that cause a temporary lack of liquidity, not being able to complete transactions in a certain price range. In this way the price jumps from one security to another without going through the intermediate prices. The most frequent gaps in the forex market are due to the publication of key economic indicators and more usually to weekend events. However, gaps are relatively rare in forex compared to other financial markets where they can occur on a daily basis. This is mainly due to the large volume and continuous hours of the forex market. Definition Copied, but this is a GAP. It can occur after the close of the stock market. And since BTC is already in these in part of Futures we could say that GAP could happen on weekends. Or when there is a lack of liquidity or a sharp upward movement after the closing of CME. Example Gap: BTC1! , CME, Close. And Open. Is GAP. 2- Rupture V: The Break in V in a trend could indicate a possible change in trend, but there is always the possibility that "Pullback" attempt to change the trend does not work and that the trend will continue. That is why we do not usually enter the pullback, if not after it, hoping to get rid of the trend. Example V: It should be added that these 2 things can continue to be a continuation of the trend or an attempt to change. Although there may also be a breakout. The common thing is to wait for Pullback, and enter there. Supports and Resistances in trends. 1- Bearish Trend Basic rules: • The trend is bearish. • We do not enter Long, we look for a Short in the trend, resistance points, resistance placed in Blue CIRCLES. We can see the supports in the red dots, and we can visualize a Pullback trying to take it higher but being rejected by the bears. We always seek to enter the blue points. Never go against the trend. Seek to go with her. Example: Tip: Do not enter a trend when it is ending. 2- Bullish Trend Basic rules: • The trend is bullish. • We seek to enter Long, At the support points, As we see there is a bearish pullback being rejected and led to the upside. The red points are resistances, and the blue points would be entries in Support. Green is the pullback. Always go along with the trend. Example: Tip: Do not enter a trend when it is ending. Example : First of all we see a very clear resistance, support. And we see that when it touched support, a bullish happened. Where was the R1 now it became a support that when tested had a magnificent bullish Then the strongest resistance. It becomes a nice support. That when tested starts a bullish. 3- Lateral Tendency Lateral Tendency In a lateral trend, both resistances and supports are possible entries, here you can make your own decision of where to enter depending on where you think the price continues to go. Here we can see that this time I have not placed it so easily, it is simple, a trend in graphics is not like the drawings, you must learn to identify them, and this is done with practice, this trend is lateral, it has small trends within it. trend. We could say that in chart 1d the trend is bearish, but in monthly chart it is still bullish, this is what I mean. Applying what has been learned: As we can see in the image we see the 3 trends. 1- Bullish trend. As we can see, the blue dots are entry areas. And the red dots would be resistances, applying the rule that we will only seek to enter within the trend. In addition to visualizing an attempt to bring the price down that is rejected being driven up. 2- Lateral Tendency. We already know that this trend is a side zone in a price range to make a decision. So knowing this, what we will do is look for entry areas. As we can see, I still do not consider the first R3 as an entry since it is still within the uptrend zone, but I take into account the consequent lateral zones. Here a hedge mode could be applied, prioritizing a Short or Long depending on the current market situation. An example is that the market is bearish, so we would seek to open a Short first and then open a Long to have a Hedge mode and make a decision as to where this lateral channel breaks. 3- Bearish trend Here we can see that the Lateral channel broke down. So if we use Hedge mode (Open Long and Short in the same asset that is hedge mode). We would be looking to confirm that a pullback to the upside is rejected to the downside, to close our long and let the short run. Thus obtaining profits from our hedge mode. Finally as we can see, we end up with similar resistances and supports. That it will not always be fulfilled. But it is a way to get out. It is clear that there are other ways to identify support and resistance. Let's talk about those other ways ... Fixed Supports and Resistors Fixed levels are support and resistance zones that remain unchanged. They are still valid at the same level, unless the price breaks through it. In order to identify fixed support and resistance levels, you should pay attention to: Psychological price levels vAnnual highs and lows •Candlestick highs and lows •Opening and closing of candles Psychological levels of resistance and support Most novice traders tend to rely on round numbers, numbers that place buy and sell orders being too exact. Here is a problem. Since the institutional ones are aware of this point of view including traders with more experiences and can make that the price does not touch those round numbers. These numbers are considered Psychological Numbers. Where inexperienced people usually decide to enter, being too obvious and therefore may: •You have a short, your round stop touches, and it goes to the Bajada. •You have an order in Short or Long, do not touch it and it goes to the direction you thought •Touch your liquidation and it goes up. •You have Long, touch your round stop touch, and it goes up. Dynamic supports and resistors Dynamic levels are areas of support and resistance that change. Don't worry if you don't know how to identify those new support and resistance levels, every time a new bar or candle appears on the chart, that zone is automatically recalculated. Moving averages: As we can see, the moving averages help you see possible rebound areas, which are changing and vary according to time periods and where the price goes in real time. We can see that moving averages of 20, 50, 100 and 200 days are mostly used. Here we can see an example of rebounds when touching the 50-day moving average, and we see that BTC is breaking them with the idea of ​​a possible support in the 200-day moving average. As we can see in CryptoGoUp Triple EMA says that the moving average is at the level of 42056 dollars. Being a possible support area. That is why many traders often use moving averages as testing areas to determine the direction of the price together with the use of indicators. 2- Parabolic SAR SAR is an indicator widely used by some traders to see dynamic support zones. Here we can visualize it. Sar is easy to use, as we can see it places points where a new trend appears, the first points being the resistance zone. And the same in case an uptrend starts. Semi-dynamic supports and resistors Semi-dynamic support and resistance levels are between the fixed and dynamic levels. While the dynamic levels of Forex support and resistance are changing and updating and the fixed levels remain constant, the semi-dynamic levels change at a constant rate. A perfect example of a semi-dynamic support and resistance level is the trend line, which changes at a fixed rate per candle. Other Tools: Fibonacci: We could also use Fibonacci but this topic will be personally touched on in another Tradingview explaining all the tools that the platform offers us using Fibonacci. We are using fib retracement projection, it usually exceeds the levels of 1.23-1.618 in cryptocurrencies with high demand. And as possible maximum peaks it usually takes the levels of 2.23-2.618. This doesn't always happen, but personally it works quite well for me. Although it should be added that it depends on where you place it, if you place the retracement or projection from another point, this could be totally different, so for this, I prefer to use Objects and you get the best probabilities according to how the fundamentals in global economics go in general. If we wanted to measure a setback, it is the same. Mostly it touches 38-61.8%. Although being liquid coins it touches the 50% levels. Known as psychological zones. As we can see when changing 3d graph. and placing the fib retracement from the start of the uptrend from 2020 at 4400 we are touching 50%. Therefore you should know where to place it, or in the best case, try. Pivot Points: Also Pivot Points, which places us different supports and resistances of each drop and rise that occurred. But it does not indicate possible areas of exact shape. We will see all these things mentioned in a telegraph by topic. I want to touch them in depth, but here you can get an idea of how to start. Remember to follow me.
COINBASE:BTCUSDEducation
by UnknownUnicorn18500526
6