[Eric's Trading System] The Vertical Support Area
The Vertical can help us identify the entry opportunity when we make long trade. It is formed by at least three candlesticks:
3. , the close price must higher than the high 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 support area
1. the top should be the upper edge of the entity of the second
2. the bottom should be the lowest price of the second
Three Steps to Trade
2. Wait for the price pullback
3. Find a reversal signal in small time periods, such as inside-bar,
Q1. If the third close price higher than the high price of 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 it always support the price?
A2. Of cause not, but it can help up improve our breakeven
Q3. Can the price always pullback?
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.
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Support Area -> Resistance Area