Candlestick Pattern for Beginners Part 4 | Support and Resistance trading strategy
You will learn everything you need to know about the support and resistance trading strategy in this video. Support and resistance have provided me with some of my most profitable trading opportunities, and today I want to share how I catch those trades! Let’s get started!
Don’t trade too many markets with too little capital
– Antoroy
Support and Resistance Trading Strategy:
The concepts of trading level support and resistance are without a doubt two of the most highly discussed attributes of technical analysis. Support and Resistance terms are used by traders to identify levels on charts that act as barriers, preventing an asset’s price from being pushed in one direction or another.
The concept behind support and resistance trading strategy seems simple enough, but as you’ll see, the concept can take many forms, and it is more difficult than it first appears.
Candlestick patterns, traders learned about entry and stop-loss points, but the target price was not discussed. This chapter will cover the target price. To identify the target price, the support and resistance points need to be identified.
Support and resistance (support and resistance trading strategy) are specific price points on a chart that are expected to attract maximum buying or selling.
At a support price, there are more buyers than sellers. A resistance price is one at which there are more sellers than buyers. Standalone basis traders can also use Support and Resistance to identify trade entry points. Long White Candlestick Pattern as support and resistance, long white real body as support. Long black candlestick pattern middle long black real body as resistance.
Trendlines:
Forex traders use trendlines to connect price series on charts or to show the best fit for some data. This line gives the trader a good indication of the direction in which an investment’s value might move. The trendline is a line drawn over the pivot highs or under the pivot lows in order to show the prevailing direction of the price. The trendline is a visual representation of support and resistance in any time frame. The charts show price direction and speed as well as patterns during periods of price contraction.
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