THE SUPPORT AND RESISTANCE STRATEGY
When price is going up and then it pulls back or changes direction, there is a possible resistance.
When price is going down and the stops and pulls back up or changes direction, there is a possible support.
(4) ways to trade on support and resistance
- You can buy when price pulls back on support.
- You can sell when price pulls back on resistance.
- You can sell when price breaks support.
- You can buy when price breaks the resistance .
Support and resistance continues...
You can look at support and resistance in different ways.
- Horizontal support and resistance
- Moving averages
Continuing on the different types of support and resistance. Let's look at some illustrations below;
1. Horizontal support and resistance