Get started

Support and Resistance

How I Trade Support and ResistanceIn this video made for Best of Us Investors I talk about my most fundamental trading component; trading and investing off Support and Resistance Levels. I also talk about how I combine this with my other fundamental component of 50% Retracement Levels. We look at live examples of NYSE:ZIM and NYSE:KO and look back in history for case studies of NASDAQ:AAPL , NASDAQ:AMZN , and NASDAQ:TSLA to see just how powerful this tool can be for high probability, low drawdown, profitable trades and investment entries!
NYSE:KOEducation
by norok
7
BASIC SUPPORT AND RESISTANCESupport and Resistance is one of the most common tools when trading. Learning where support and resistance is situated on a chart is the first step to your investing/trading strategy. Knowing this basic skill can determine whether you buy/long or sell/short or help in your further analysis. A support level is an area where price has come down to and has respected at least 3 times and then pushed higher. Bounced some might say. Resistance is a level where price has come up and has been rejected at least 3 times previously. The higher the time frame the stronger these support and resistance levels will be, I tend to use weekly, daily and the 4 hourly. When support is broken it becomes resistance, when resistance is broken it becomes support. Current price action must always be above support and below resistance to make them valid. If you are having difficulty finding levels I suggest moving to the line chart to cut out some of the noise (wicks). There is also support and resistance flip which I will cover another day.
COINBASE:BTCUSDEducation
by CassM
6
Is SHIB in the ACCUMULATION phase? Identifying the WHALES!Shiba Inu (SHIB) is one of the most popular project of 2021. After the accumulation phase, it rose by about 1000%! Now the token has dropped by 70% of its ATH and has been consolidating for about 2 months. Could this mean the beginning of a new growth phase? Accumulation phase is the purchase of cryptocurrency by BIG players to sell higher to the retail investor. There's not a lot of HYPE around this token right now. Retail traders who have lost 20-50% of their money are starting to sell out in a panic. At this time, the BIG players buy the available tokens from the market to sell higher to new traders who will come on the next HYPE. The same situation as it was in 2021! It is important to say that if Bitcoin starts its drop, then altcoins will drop too. Is this really the accumulation phase and we close to RENEW the ATH? We will only know after some time, but we already see the signs of accumulation phase on the chart. Friends, press the "like" button, write comments and share with your friends - it will be the best THANK YOU. P.S. Personally, I open an entry if the price shows it according to my strategy. Always do your analysis before making a trade.
Education
by Yuriy_Bishko
10
AUDJPY support and resistance zonesSupport and resistance are the next two things that are important for successful trading. These are some imaginary lines. That is some zones depending on how someone draws them on the graph, which show us where the price has stayed the most. We noticed in this example that the price was constantly coming back and bouncing back. When we talk about zones or support and resistance, there are two types: - Major zones - Minor zones Major zones are all zones that are drawn above one one hour time frame. ( Respectively timeframe one h, four h, 1Day, 1Week, 1 Month.) Minor zones are smaller zones, and they are drawn in less than an hour. (Respectively on timeframe 30M, 15M, 5M.) The only advice I can give you about this is to "practice makes perfect". How to recognize zones is just a matter of exercise. The more you practice, the easier it will be for you to recognize them. The characteristic of how I draw them is that I look for wicks from candles and draw them on them. That is, I draw them on candlesticks which is visible on the graphs. In this example, we can expect the AUDJPY pair to climb to the resistance zone 99.00-104.00.
Education
by Aleksin_Aleksandar
3 Bar Inside Bar Trading StrategyBullish Example (Chart) Learn the 3 bar inside bar strategy or harami bar setup. Always trade during high liquidity and volume times of the session, which is end of Tokyo to end of London (12 hours). Look for all patterns to trade at resistant and/or support areas, which are at quarter theory lines on charts (see orange lines on charts). You can you tube or google Quarter Theory, for more information. This is one of the best strategies to scalp, day trade or longer on 15 minute or on higher time frames.
Education
by Anbat
3
Are Wicks Important? Types Of Wicks: Fill, Rejection & ReversalPlease look at your own charts: Do you see all of the following? Wick Fills? These type of wicks happen going with the trend and get filled with further price action on chart. Rejection Wicks? Mostly happen at key support and resistance zones or key quarter theory psychological numbers, a lot of traders have orders there. Reversal Wicks? Happen at key areas mostly on 1 hour, 4 hr, daily, weekly and even monthly charts- these are areas with large wicks in past which once price action comes into these areas at key resistance and support areas- will accumulate orders and reverse directions. See attached 1 hour charts---- How many different types of wicks can you see and/or spot.... you need to see quarter theory psychological numbers in actually real live time when trading Forex. Always start with monthly charts and keep going lower until you are trading with the chart of your choosing. Higher time frames will give you better risk to reward opportunities then under 1 hour... If you truly understand wicks- you will be a better trader and know if you scalp trade, day trade or position trade when to look for quick wick fill candles to catch some quick pips. These are the easy Forex trades to do, make sure you are trading during high liquidity and volume time periods only.
Education
by Anbat
Is this a good idea to short apple now?AAPL is in a downward trend since January 4th, 2022!' Although AAPL could go down another 10% in the coming weeks, I believe this is not a good place to short it just before the Quadruple Witch(March 18th). Education: If you detect a Downward regression channel try to open a short position in the upper half or at least near the midline..! The biggest problem with many traders is: They divide the market to Buy/Sell or Long/Short, but they should know there is "No Trade Zone" as well..! Best, Dr . Moshkelgosha M.D DISCLAIMER I’m not a certified financial planner/advisor, a certified financial analyst, an economist, a CPA, an accountant, or a lawyer. I’m not a finance professional through formal education. The contents on this site are for informational purposes only and do not constitute financial, accounting, or legal advice. I can’t promise that the information shared on my posts is appropriate for you or anyone else. By using this site, you agree to hold me harmless from any ramifications, financial or otherwise, that occur to you as a result of acting on information found on this site. * I have a long position.
NASDAQ:AAPLEducation
by Moshkelgosha
2
Longing GRT after Falling Wedge [tutorial] with exampleThis is a Tutorial how to use the falling Wedge pattern as longing condition because its relativ reliable. The falling Wedge is a reversal pattern which will form during an uptrend, so it will interrupt the prior trend. Which isnt that easy to identify if you dont have any experience.(Tip just use the Indicator from tradingview it will work great and do a lot of work for you ;) ) Another significant feature is the contraction over the elapsing time until mostly continuation of the previous trend, that will be the time we look for confirmation and long this position. At number 1 you can see the difference between the highest and the lowest point of the wedge which will be the target range of our taking profit after we broke the resistance. The bottum/supportline is the stop lose range. At number 2 you can see my position based on the numbers from number 1. number 3 and 4 is just repeated 1 and 2. if you spend a lot of time infront of your PC you can set the stop lose high so it will become another stop lose and you have garanted profit. Dont get cocky and set to wild leverages. This isnt a financally advise! i dont take responsibilities, so calculate your own risk and do your own research
Education
by devolping_trader
80/20 P1The 80/20 Principle is an enormous time-saver. If you spend 10 minutes learning these skills now, it will have an endless return in the future. An example of a great reward: (lifetime saving of time) to risk (5-10 min of reading). The 80/20 Principle is a very effective concept in achieving efficiency. Instead of wasting resources on unimportant tasks, you can focus on core revenue making activities. This principle is one of the essential concepts in modern-day business. This idea will discusses what the 80/20 Principle means, why it's effective, and how traders can benefit from it. Instead of scanning, I highly recommend reading this entire idea & P2. Information overload is rampant in our modern society. We are not used to focusing on any topic for longer than 30 seconds. The main point is that the numbers are highly unbalanced. Humans tend to think that each unit of effort, or resource, has (almost) equal importance in achieving success. But the 80/20 Principle clearly explains the numbers are highly skewed. The probability theory explains that it is, “virtually impossible for the 80/20 Principle to occur randomly.” 80/20 PRINCIPLE IN TRADING Traders can use the 80/20 Principle as well. In fact, there are many ways traders can apply the analysis from the 80/20 Principle. The 80-20 rule not only holds true for the analysis of our P & L account, but also for a wide range of topics. Number 1: trading performance. Traders can analyze these relationships: Are the majority of losing trades caused by the same mistake? Are the majority of losses coming from a few trades? Are the majority of losses coming from a small number of days? The same questions can be asked for profits and winning trades as well. Number 2: individual performance (personal effectiveness). Traders can analyze these relationships: How much time is spent on each task and how much benefit does it bring? What are the crucial tasks in my trading that lead to the most results? What actions are the most beneficial for my results? Number 3: the market. Traders can analyze these relationships: 80% of the time the market is in the middle of a move (not reversing), whereas 20% of the time the market is forming a top or bottom. 80% of the time the market is not trending, 20% of the time it is trending; 80% of the market moves are noise, 20% of the market moves are an actual signal; 80% of the time the market is in consolidation and 20% of the time it is in an impulse. Number 4: strategy performance. Traders can analyze these relationships: Do the majority of the trading opportunities occur at the same points during the strategy? Are the majority of my wins generated by a minority of the same entry type? Do the majority of my filters have a very small impact on the performance? Does a minority of my tools and indicators have the most positive impact on the strategy? The above questions and ideas are examples. Everyone is highly encouraged to analyze and find connections that benefit them as an individual trader. This is not limited to the above, and many more ideas can be created. In Trading, it's a fact that most traders trade too much and try to force results by working too hard. In terms of your trading strategy: Focusing on the above will make you more money - but you'll also reduce the effort you put in. Shift your emphasis to long term trading - and only trade the best signals. By doing this, your workload - and the amount of time you need to spend on your analysis will be reduced. If you apply the 80 - 20 rule to your trading in the above way, you'll cut the effort you put in. You'll also increase the profits you make - and that's what all traders want! Many people think that the more effort you put in, the better the results you obtain. This is true in many areas of life - but not trading! Here you are paid for being right with your trading signals - that's all. Also, don't fall for the myth that the more you trade, the better your chance is of having trading success. This is simply not true - because the big trades, with the best ratio of risk to reward don't come around that often. Focus is the only way anybody can enjoy their tasks, be in the ‘flow’ of things, learn and retain information, and direct their attention to specific, valuable goals. BINANCE:BTCUSD 👍
Education
by AdamsLibrary
1
Measured Move ToolThis is just a quick tip on creating a measured move tool. If you're like me (having to work things out alone the slow way by trial and error) then you probably messed around with trend lines making a mess of the chart and it always being a faff to work out measured moves, which I use pretty religiously in setting profit targets and goals. However, no more faffing needed. The Fib Retracement Tool can be re-appropriated as a measured move tool. Simply double click the tool settings and change all of the nonsense measures that come in the pre-sets (I don't use Fib Retracement in my trading). In my adapted Fib Tool I simply change the settings to 0, 0.33, 0.5, 0.66, 1, 2, 3, 4. I also grey out slightly the 0.33 and 0.66. I find 0.33, 0.5 and 0.66 are great for measuring pullbacks. And that's it. Measured move tool hack complete. Enjoy.
Education
by Newton_Trader
1
TYPES OF FIBONACCI's & WHEN TO USE THEM 📐📏 Hey traders, In this article we will discuss two very popular Fibonacci tools: Fibonacci retracement and extension. 1️⃣Fib.Retracement tool is applied to identify a completion point of a retracement leg within an impulse. As you know price action has a zig-zag form. For example, in a bullish trend, the price tends to set a higher high then retrace and set a higher low before going to the next highs. In a bearish trend, the price tends to set a lower low and retrace to a lower high. With retracement levels, we are trying to spot the point from where the next impulse in a bullish or bearish trend will initiate based on the last impulse leg. Fib.levels that we will apply are: ✔️0.382 ✔️0.5 ✔️0.618 ✔️0.786 The retracement levels will be drawn based on XA impulse leg. From its low to high if the impulse is bullish and from its high to low if the impulse is bearish. From one of the above-mentioned levels, a trend-following movement will be expected. One should apply different techniques to confirm the strength of one of these levels. 2️⃣Fib.Extension tool is applied to identify a completion point of the impulse. In a bearish trend, the extension levels will indicate a potential level of the next lower low based on the length of the last bearish impulse. Fib.levels that we will apply are: ✔️1.272 ✔️1.414 ✔️1.618 The extension levels will be drawn based on XA impulse leg. From its low to high if the impulse is bullish and from its high to low if the impulse is bearish. From one of the above-mentioned levels, a retracement leg will initiate. One should apply different techniques to confirm the strength of one of these levels. Of course other ways of application Fib.Retracement and Extension levels exist. However, these two are the most common. How do you use these levels? ❤️Please, support this idea with like and comment!❤️
BITSTAMP:BTCUSDEducation
by VasilyTrader
161
FB waited Long positionFB stock repeating July 2018 pattern. Expect price to further decrease until it increases. The difference here is that MACD has already crossed over into bearish territory. Stochastics has moved into oversold territory and weakness in the trend shown by the RSI is looking oversold. RSI signal line of 41 is still in range between 50 and 20. This shows that there is room for the stock to further dip. Either wait for 6 months to get a bullish candle with confirmation candles to enter the trade (approximately July 2022). If taking a long-term position (greater than 1 year) and it's ok to take a temporary drawdown or to dollar cost average, it is a good buy right now. Otherwise, it's better to wait till July and see if the price starts appreciating again as an entry trade. Risk Disclaimer *Futures, stocks, exchange traded funds and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures , stocks, and forex markets.
FEducation
by ashpat86
3
Market Cycle in Classic Price Action ViewIn all markets buyers and sellers are fighting to find fair price. If price becomes oversold or overbought, the other side of the market will enter and tries to find fair price. Markets are either in Trend or Trading Range . Trend is one sided trading phase and trading range is 2 sided trading phase where both sellers and buyers are active. Trading Range phase will be started if both buyers and sellers thick the the current price is fair. Trend is where that one side of market is stronger and can move price in its side. We have 2 kinds of trend: 1) Spike(Breakout) 2) Channel which is weaker phase in comparison to Spike. In classic price action, market cycle is divided to 3 parts. I will explain each part with the signs. 1) Spike(Breakout) Phase: It's also know as Imbalance. Strongest part of market cycle which one side of the market is very strong and breaks many supports/resistances. This phase will be ended after first actual pullback. Signs are: Consecutive Bars - Gaps between bars - No Pullbacks or Small Pullbacks - Not much overlap between bars 2) Channel Phase: Another type of trend but weaker than Spike phase. Usually begins after first actual pullback. In the channels, the side that caused the spike is in control of the market. For example if we have bull spike, probability implies that we will have a bull channel after spike phase becomes finished. In both spike and channel phases only take with trend trades. I mean trade in direction of trend and not against it. Signs are: First Pullback - Deeper pullbacks - Higher Highs/Lows in bull - Lower highs/lows in bear / Overlaps between bars 3) Trading Range: Finally market will find the fair price and that's why we have trading range phase. Every channel will finally be broken from opposite side. First Opposite Breakout of channel, is usually a sign of trading range. In trading range phase both side of the market are trading so you can both buy and sell in trading range. Buy low at bottom of range and sell high at top of range. Signs are: First Breakout of Channel - You see both buy and sell setups - Too many overlaps - Horizontal Movement Some Examples: 1. EURUSD 2. BTCUSDT 3. XAUUSD
Education
by AmirSoraya
3
The Power of using NPOCS on your Charts BTC/USDA Naked Point of Control is an untested point of control which is either time based or volume based and exists in the current market structure. These NPOCS can serve as excellent targets for trades as well as potential areas of support and resistance dependent upon the NPOC's profile distribution. I have marked this Bitcoin Chart with Daily , Weekly and Monthly NPOCs and using the boxes I have demonstrated how powerful NPOCS can be when incorporated into a trading strategy for Scalps Daytrades and Swing setups. I use NPOCS with other confluences mainly Fib levels and order flow and the respect for these levels is well worth noting . I hope this information helps you define a strategy for your trading as utilizing these correctly will boost your ROI. Whatever the case thanks for viewing my work and be sure to like and follow .
BYBIT:BTCUSD.PEducation
by SJTRADESFUTURES
15
Most of the time, you will observe a correction.Today we will go through a simple trading lesson, but an effective one. The example I will be using today in terms of timeframes is mainly focused on Swing Traders; however, these principles remain valid for any timeframe because of the fractal characteristic of the market. Also, this will be a bullish example, but the same principles apply to bearish examples. Here, you will have a 4 step process to understand how to improve your executions on any asset. 1)Major Daily Trendline: This is the main structure I have as context. The structure or trend must be evident, such as 300 days bearish trend, where we can draw a descending trendline. It's crucial when looking at these structures to see if they are close to a "major" support zone or if they have already made contact with them. That would be optimal! (Here I would use the weekly timeframe) 2)Breakout: Assuming that the previous conditions on item 1 were fulfilled, now we are in a situation where we can expect a change in direction, and we are interested in developing a setup on the new "expected impulse." Most people fail in developing a good setup because they trade the first breakout of the structure, thinking that the price will skyrocket. As a general rule, consider this: "Never trust the first breakout" This takes us to the next item. 3)Correction: After the breakout of a major structure like the daily trend of the last 300 days or more, we want to see a correction! Here corrections will tend to show some proportion to the previous structure the price is coming from. I draw an ABC pattern on this template, but the main idea is that you want to observe a clear retracement from the breakout where the price tests the broken trendline again or at least makes a clear consolidation of a few days. 4) Setup: Now that we observed all the previous sequences, we can easily develop setups: Pending Stop order for our Entry-level above "B" on the flag pattern. Then, stop loss below "C" or, in other words, below the correction. Finally, take profit on the next MAJOR resistance level. Why do this? Because you are adding filters before trading, and that way you need the price to fulfilled certain conditions which will have three major improvements: Increase the odds of engaging on a high-quality setup and the 2nd one avoid low-quality scenarios or fakeouts. Also, you will avoid overtrading because you need CONTEXT. Thanks for reading, feel free to ask all your questions or more information related to this in the comments ;)
Education
by ThinkingAntsOk
3
🌳very important terminologies in Trading🌳Hello every one 🟡(1) Price action The Movement of an asset or Security's price over Time , Plotted on The chart 🟡(2) All-Time High (ATH) The Highest asset has Ever been in Price 🟢(3) Support a Point in the market where the Price is less likely to drop below due to previous demand or price action 🟡(3) Resistance a Point in the market where the Price is less likely to break above due to previous demand or price action 🔵(4) Trend line a line indicating the General Price Direction of a chart 🟡(5) break out when the Price of the asset break through a pre-determined Trendline ⚪(6) Formation when a Financial Chart moves in such a way as to create a Recognizable pattern.patterns to signal trading opportunities either to enter or exit positions. 🟢(7) pump or bullish The price of an asset is going up 🟡(7) Dump or bearish The price of an asset is going Down 🔵(8) Long Position a Regular Buy in The Market. a Trade that is Predicting the asset will go up in value 🟡(8) short Position The opposite of a long Position. Entering a Trade position betting the asset to go down in value.
Education
by CobraVanguard
21
Knowing when NOT to trade is also important | XAUUSD Today we will take a look at XAUUSD. I really like this asset to trade because of the consistent trends it provides, which are great for swing traders. When you are executing a swing strategy , the main thing is avoiding choppy conditions and increasing the odds of developing setups on situations where you may observe clean trends from point A to point B. In this situation, I want to show how I'm currently thinking XAUUSD . Since MAY 2021, the price has been moving sideways on an average price of 1800, going up and down. This is the type of situation where I don't want to develop swing setups because I'm not observing trending behavior. That's why NOT trading is protecting my capital from low-quality setups. The better you become at waiting for perfect scenarios, the higher the odds to engage on high-quality trades that provide a clear edge after several executions. As you can see, I have defined the current area between the support and the resistance as "Bad zones for swing setups." And I have defined the support and the resistance zone as "good levels for setups" Why? Because as I explained before, in the current area, we are not observing clear trends for us to develop swing setups. That's why we need to wait for the price to make contact with key levels (support and resistance). It is from these key levels that 2 things may happen: the price will break it or bounce. As we are working on a weekly timeframe, these situations will not occur in a few hours, it will take days until the resolution of the direction. That's why if you do your homework, you can get ready to react in the best way once the price reaches these zones where we will tend to observe some reactions and the beginning of a new movement. My current plan is this: IF the price reaches the support zone at 1680, I want to start thinking in bullish setups towards 1900 or bearish setups towards 1450 IF the price reaches the resistance zone at 1900, I want to start thinking in bullish setups towards 2070 or bearish setups towards 1680 I hope this post is helpful to better understand the difference between good and bad zones to develop setups. Remember becoming patient can be a POWERFULL edge on the market. Most of the people are not. Thanks for reading and feel free to share your view in the comments!
OANDA:XAUUSDEducation
by ThinkingAntsOk
3