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THE SUPPORT AND RESISTANCE STRATEGY

 

Alpha
(@alpha)
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Joined: 2 years ago
Posts: 11
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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.

 

How do you trade support and resistance?

(4) ways to trade on support and resistance

  1. You can buy when price pulls back on support. 
  2. You can sell when price pulls back on resistance.
  3. You can sell when price breaks support.
  4. You can buy when price breaks the resistance .

Support and resistance continues...

1641220237-Screenshot_20220103-172728_Drive.jpg
This topic was modified 11 months ago by Alpha

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Alpha
(@alpha)
Member Moderator
Joined: 2 years ago
Posts: 11
Topic starter  

Illustrations below show how to buy and sell on support and resistance;

1641229409-Screenshot_20220103-194156_Samsung-Notes.jpg
1641229454-Screenshot_20220103-195406_Samsung-Notes.jpg
This post was modified 11 months ago by Alpha

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Alpha
(@alpha)
Member Moderator
Joined: 2 years ago
Posts: 11
Topic starter  

You can look at support and resistance in different ways.

  1. Horizontal support and resistance 
  2. Trendlines 
  3. Moving averages 

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Alpha
(@alpha)
Member Moderator
Joined: 2 years ago
Posts: 11
Topic starter  

Continuing on the different types of support and resistance.  Let's look at some illustrations below;

1. Horizontal support and resistance 

1641498519-Screenshot_20220106-180152_MagPic.jpg
 
2. Trendlines. 
1641498659-Screenshot_20220106-175714_MagPic.jpg
 
3. Moving Averages 
1641498719-Screenshot_20220106-180036_MagPic.jpg
 
You may choose to specifically trade just horizontal support and resistance or just trendlines or moving averages.  However you can also trade all the 3 all together.  The choice is yours.
 
Next we shall see how to determine your risk to reward ratio when trading the support and resistance strategy... thanks for following 👌
This post was modified 11 months ago 3 times by Alpha

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SpaRker
(@sparker)
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Joined: 5 years ago
Posts: 14
 

@alpha What moving averages are you using?


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