[Eric's Trading System] The Vertical Resistance Area
The Vertical can help us identify the entry opportunity when we make short trade. It is formed by at least three candlesticks:
3. , the close price must lower than the low price of the second , meanwhile, there is a significant increase in , this is the most important requirement.
The third help us identify whether there formed a vertical .
How to draw the vertical
1. the top should be the highest price of the second
2. the bottom should be the entity bottom of the second
You can adjust the flexibly.
Three Steps to Trade
2. Wait for the price raise back
3. Find a reversal signal in small time periods, such as inside-bar, pin-bar
Q1. If the third close price higher than the high price of the second , but the didn't increase, should we identify it as the vertical support area?
A1. We can also look at it as the , but it is not as strong as we think, you should focus on the reaction when the price back the area
Q2. Can the trend always reverse at the resistance area?
A2. Of cause not, but it can help up improve our breakeven, we can trade with a lower stop loss.
Q3. Can the price always raise back?
A3. Not for sure, if we miss the opportunity, find the next
Hi, I'm Eric , a cryptocurrency trade enthusiast, focus on trading, I am going to share my trade though which will help me review and improve my trade system I think.
If you like my thought, please give me a like. Thanks