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Support and Resistance

supports and resistances and how they convert ✔First of all lets start with the brief technical explanation and after that go through the analyse DOGE ✔ 1 support( an imaginary line, level or area ) 👍one of the most simplest technical tool that use for indicating the proper point for buyers to enter or purchase one stock for using support line we need more than tow price points that an asset doesn't fall below more than those points and using line to connect them 2 resistance ( an imaginary line, level or area ) 👍unlike support line investors use it to figure out the place for exit or selling one stock and for using resistance exactly like support line we need more than tow price points and one line to connect them but we should pay attention to this point that asset doesn't ascend above those points ⏲how support and resistance line convert to each other ⏲ 👍support and resistance can easily change to each others in simple word when acceptable penetration of the price happen in one line for next price hit (be touched by the price ) this line act as an opposite function for example we have strong support area if the price stand below this line and stay away for awhile for next time when the price become close to this area it will works as a resistance for the price 3 breakout 👍usually indicates new trend when the acceptable penetration happens by the price to one support or resistance in indirect way for example we have strong support line and the price start to stands below the line and continue its movement here we have breakout you can use horizontal line at the left corner of your charts at trading view for indicating your supports and resistances. or using other tools like Rectangle or Ellipse and indicate support or resistance zone instead of simple line. 🚀🚀analyse of idea🚀🚀 here we have important daily trend line and strong support area 💣 so If the price breaks this trend line and price stay above this line we expect gain for the price and our noticeable resistance line and our next target are located on the chart. This is not financial advice, always do your own research. 🐳MAD WHALE🐋
Education
by MadWhale
23
Why Are Psychological Levels So Vital In Trading ?WHAT ARE PSYCHOLOGICAL LEVELS AND HOW DO THEY WORK? Psychological levels are market price levels which are often key levels in forex denoted by round numbers. These round numbers frequently act as levels of support and/or resistance. Psychological support and resistance consistently work because of fundamental human disposition. Human beings value simplicity; from a trading perspective this means valuing whole numbers. Traders often use these numbers as entry, exit or stop levels. These stops and limits can alter order flow and price changes. IDENTIFYING PSYCHOLOGICAL LEVELS ON FOREX CHARTS Traders will often call these whole number intervals ‘double-zeros,’ as these prices are at even numbers such as 1.3000 in the EURUSD. See the chart below and observe how the price acts around these levels in the case of EURUSD M charts. These levels works best on Higher timeframes especially on the Monthly charts. The link below reveals one of the example on how a trader can incorporate this particular element of trading in their analysis and setups Cheers, I hope you found this educational material helpful
Education
by FX618Analysis
Cloudflare teaching moment. Meteoric rise = catastrophic dump.Hi everyone, Today I would like to share a piece of knowledge on parabolic growth and poor market structures. Let us take a look at NYSE:NET Cloudflare stock. This was an attractive buy back in 2020. As always, nobody saw that until everyone started screaming about this stock on Twitter. I saw an opportunity in investing into Cloudflare later in 2021 for a long-term. I did not know what's coming. At the beginning of October, after a decent sell-off something strange began happening. Stock rose TWELVE days in a row. And not just stayed barely positive, it gained insane 68% in price during this short period. Right there I knew this was not sustainable and price won't last up there for long. Yes, I sold at 175 . Yes, I missed a run up to 220 . But, really, did I? Noone can predict the top. But you can predict the inevitable downfall. The Lesson. Look at the chart. You see the price in the first box going parabolicly up. The price took off to the moon and was hovering up in the air. Thus, poor structure has been created. There is no single support level from 137 to 182 . The Market hates poor weak structures and it tends to repair them sooner or later. That is exactly what happened with Cloudflare stock. Price has been flushed from 204 down to 123 as fast as it flew up there back in October. You can see that in the second box. The structure has been repaired. A lot of data points were created in the process, which will help with the analysis in the future. This might be a rebirth of Cloudflare stock constituting healthy future movement. Trade wisely and good luck! ----------------------------------------------------------------------------------------------------------------- Disclaimer!!! This is not financial advise
NYSE:NETEducation
by AyBe_Invest
2
⚡️NAS100 - Breakdown of the Two Sniper ‘Shorts’⚡️Hello Traders :) - I haven’t been posting trades lately but I’ve been trading - So here I will post a breakdown of the two Effortless trades I took on NAS100 ⚡️Let me break it down⚡️ ❗️❗️Reminder when trading NAS100❗️❗️ ▫️Use Pending orders ▫️Take Partial Profits ▫️Trail your Stops ▫️Minimum Risk to reward 1 : 3..NB. NAS can give you up to 1:10 First time frame was the Daily ♦️Downtrend confirmed by a lower low ♦️Price reached a Strong Resistance Area ♦️Strong downtrend structure Second time frame was the 4 hour ♦️Supply Area on 4hr ♦️Several touches on the strong resistance level ♦️Lower low structure for downtrend Third time frame was on the 1 hour ♦️Strong Bearish engulfing candle used for Entry ♦️Lower Lows made at a strong Resistance Level ♦️Weakening formation of candles as they approach the strong level Hope you guys learnt a thing or two Kindly leave a like and tell me what you think about these trades and where NAS might be heading to next Stay Blessed! Slick⚡️
FX:NAS100Education
by Slickpapi
5
Breakout Trading | 7 Steps to Follow 📝 Hey traders, Breakout trading is one of the most popular trading strategies. Being quite simple in theory, it remains quite complex and complicated in practice. In this post, we will discuss 7 steps every breakout trader must follow. 💬And just in brief about a breakout trading itself: this method aims to spot a key level (it might be horizontal support/resistance or a trend line) and then to trade its occasional breakout assuming that it will trigger an impulsive move. 1️⃣No surprise, the first task of a breakout trader is the identification of key levels. Preferably these levels should be spotted on weekly/daily time frames. 2️⃣Once key levels are spotted, a breakout trader should patiently wait for the test of one of those. His goal is to wait for a breakout. In that step, many traders fail. The problem is that in order to confirm the breakout, one should have strict & reliable rules to follow. The rules that describe a confirmed breakout. *I apply the following rule: the breakout of a level will be considered to be confirmed once the candle closes above/below the structure on the highest time frame where the structure is recognizable. 3️⃣Once the breakout is confirmed, the next step is to wait for a retest of a broken level. Why retest? Simply because a retest gives a better risk to reward ratio for the trade. And even though there is no guarantee that the price will retest the broken level and because of that some trading opportunities will be missed, in the long run, retest trading produces higher gains. 4️⃣Opening a trade on a retest one should know the exact target levels. The levels where the profits will be taken. Again, newbies traders make a lot of mistakes on that step. Remember that your targets must be realistic, they must be based on closest strong structure levels, not on your desired returns. 5️⃣Also, a breakout trader should set a stop loss. And again, a stop-loss level must be safe, it must be set at least below/above a previous minor structure to protect you from stop-hunting. Stop-loss reflects the point where the trader becomes wrong in his predictions and where the trading setup becomes invalid. 6️⃣Once the trading position is opened and stop-loss & take-profit are set, one should patiently wait. There is no guarantee that the price will start falling/growing sharply after the breakout. The market may start coiling for a quite long period of time before it starts acting. Breakout trader must be patient not allowing his emotions to intervene. 7️⃣Lastly, one should remember that his exit points are stop-loss/take-profit levels. Stop-loss adjustment in case of a position drawdown, preliminary profit-taking, and target extension are your worst enemies. Be disciplined, don't be greedy, and keep your emotions in check. Of course, this 7-steps trading plan is not sufficient enough for profitable breakout trading. There are so many nuances on each step of the plan to consider. However, let this plan be your initial guideline: learn & follow that and with time, keep elaborating its rules until you become a consistently profitable trader. Are you a breakout trader? ❤️Please, support this idea with like and comment!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
19
Pulse of an Asset via Fibonacci: Chapter 7: the Mighty 2.618Chapter 7: "the Mighty 2.168: like a Rook in Chess" "Impulse" is a surge that creates "Ripples", like a pebble into water. Each of the Ripples has precise bounds defined by the "Golden Ratio". Price will often ricochet, creating a "Ping" that one can almost HEAR. The 2.618 is a Special ratio, 1.618 x 1.618, as the Golden Ratio Squared. It is like a Rook in Chess: Strong, Steadfast, and Dangerous at a Distance. If a wave is to be sustainable, then it must have a very strong 2.618 core. . This is "Chapter 7" of my ongoing "Book" detailing my methodology. The first six chapters are linked below, best to start with #1 and #2. I will use this Chapter to collect example of the Might 2.618 in action. Previous Chapters: Chapter 1: Introduction and numerous Examples. Chapter 2: Detailed Samples and multiple Impulses. Chapter 3: The Dreaded 9.618: Murderer of Moves. Chapter 4: Impulse Redux: Return to the Birth Place. Chapter 5: Golden Growth: Nature's Perfect Expansion. Chapter 6: Give me a ping Vasili, 'one' Ping only please. . . Ordered Chaos every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse. each line Gains its Gravity. each line Tried and Tested. each line Poised to Reflect. every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms. He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos. Ordered Chaos .
COINBASE:BTCUSDEducation
by EuroMotif
41
The Quarters Theory (Daily) Part 1-4On example daily chart of EurAud (on this article)- what do you see related to the quarters theory? support and resistance? trading edge? I see 100 pip round whole numbers (black lines) divided into four equal parts of 25 pips apiece (red and yellow lines)- If you did trade with 100 pip stop losses- this would be a great way to trade either position, swing or daily charts- from whole round numbers to next whole round number. Those would be 100 pip stop losses vs 100 pip targets or 1:1 Risk Reward setups- you would need to have a win rate of 60% or more to make a profit with this type of trading, or you could set a 100 pip stop loss and let trade run for either a couple, few or many more days and have a higher Risk Reward setup. The quarters theory started with 1000 pip areas, like example from 1.6000 to 1.7000 would be 1000 pips, break this down into four equal parts or as follows: 1.6000- major round number- 1.6250- minor number-250 pip area 1.6500- minor half number- 250 pip area 1.6750- minor number- 250 pip area 1.7000- major round number This can be done on any charts from monthly down to 1 minute and should be done for knowing possible entries, exits and risk reward (lot sizes)- on every trade you make. I use the quarters theory for scalping, it will give you a trading edge and control your trades within a certain structure of the market.
Education
by Anbat
1
The dominance of stablecoins as a divergence tool in BTCOn the top chart we have the BTC/USD index, and on the bottom chart we have the sum of the dominance of the main stablescoins: USDT, USDC, DAI and UST. As a rule, when the dominance of stablecoins rises, the price of BTC falls. Just look at the respective numbered arrows. The only exception was arrow number 3, which had a more lateral movement in the dollar's dominance. Now looking at this exact moment, we have a rise in stablecoin dominance. The next resistance is at 7.75% (if dominance continues to rise).
INDEX:BTCUSDEducation
by andre_007
Which pattern could be more effective?At the first glance, You may find both patterns correct and justify both! But adding ATR to the chart may reveal the hidden truth! ATR only measures volatility and not the direction of an asset's price. Pattern 1: Broadening Formation or Megaphone What Is a Broadening Formation? A broadening formation is a price chart pattern identified by technical analysts. It is characterized by increasing price volatility and diagrammed as two diverging trend lines, one rising and one falling. It usually occurs after a significant rise, or fall, in the action of security prices. It is identified on a chart by a series of higher pivot highs and lower pivot lows. Pattern 2: Corrction/consolidation In this situation, we expect lower changes in ATR readings! Best, Moshkelgosha 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. Reference Articles: www.investopedia.com www.investopedia.com www.investopedia.com
NYSE:FEducation
by Moshkelgosha
2
Learn Top-Down Analysis | The Best Trading Strategy 🏆 Hey traders, 🔝Top-Down analysis is one of the most efficient ways to analyze & trade different financial markets. In this post, we will discuss the time frames to watch and the main steps to go through to execute a Top-Down trading strategy properly. Being a Top-Down trader your task is to assess the global market perspective and identify the zones, the areas from where it will be relatively safe for you to trade it following the trend or catching the reversals. ➖Weekly time frame shows you the price action during the last couple of years. It unveils the major zones of supply and demand and indicates the long-term direction of the market. Your task is to spot these zones and underline them. The strongest market moves most of the time initiate from these zones. At the same time, you must remember that on a weekly time frame the market is extremely slow. Being beyond the key zones 90% of the time, it takes many weeks, even months for the market to reach them. ➖Once you completed a weekly time frame analysis, the next on your radar is a daily time frame. Daily time frame shows you 1-year-long price action. It indicates a mid-term sentiment. And again, here your task is to simply identify the market trend and underline major key levels. *It is highly recommendable to apply different colors for highlighting weekly/daily levels. Completing weekly/daily time frame analysis, your task is to set the alerts on at least two closest support/resistance clusters. You must patiently wait for the moment when the price reaches one of them. Once the underlined key level is reached, you start the analysis of intraday time frames. ➖The intraday time frames on focus are 4H/1H. Your task here is to spot the price action/candlestick patterns. With such formations, the market unveils its reaction to the key level that it is approaching. You are looking for a pattern that confirms the strength of the level. Spotting the pattern you are looking for a trigger to open a trading position. Most of the time it is a breakout of a trend line or a horizontal neckline. The breakout confirms the willingness of buyers/sellers to buy/sell from the underlined support/resistance. Only then a trading position is opened. Of course, in practice, Top-Down analysis is very complex and many things and concepts must be learned in order to apply that strategy properly. Follow the steps described in this post, learn to identify key levels and recognize the price action patterns and you will see how efficient this strategy is. Do you apply a Top-Down trading strategy? ❤️Please, support this idea with like and comment!❤️
Education
by VasilyTrader
33
RSI: A simple method to trade trends and rangesI write this tiny article to share the basics or my use of ths RSI indicator, coupled to supports and resistances levels, as well as trend lines (or any indicator you want to use as SUP/RES (moving averages, vwap ...)) This use implies a bit of practice in spotting divergences, but let's be honest, many of them appear on previous supports or resistances, just look at these levels and you can be sure you'll find them if a reversal is about to occur.) The second specificity is the use of a moving average applied to the RSI (in my exmaple, a 50 periods EMA) I developped my own RSI+MovingAverage script, but I'm sure you can find similar scripts that have already been shared within the community, thats why I don't publish it for now. Anyway, feel free to ask if you're interested in my script, it's obviously free. Lets consider two different contexts: Trends (Bullish/Bearish) Ranges In trends , there are two things to take into consideration. Let's explain what we need to work on a bullish trend: - If the price is on an interesting level (moving average, trend line, support), you can try to long upon the RSI crosses its moving average, indicating the potential end of the current retracement (even better if a bullish divergence appears close to this price) - If the price gets close to a resistance, and moreover if a bearish divergence appears on the RSI, you can consider it as a good exit price, or wait for the next retracement in order to pyramide your trade (depending on your approach). In a bearish trend, you obviously need to do the exact opposite, wait for retracements (flags or other), and find bearish divergences OR sell when the RSI is clearly crossing down its moving average. Of course you can wait for the RSI crossing above/under its moving average to get another confirmation that the movement is starting. You can see a few examples on the following screen In ranges , it's even simpler. Once you found your support and resistance levels (it can be old levels that have already generated good reactions) all you need is to spot bearish divergences on the resistance, and bullish divergence on the support. I personally like to cut at least a part of my position when we reach 50% of the range, which can be often considered as a support/resistance. It's totally up to you to exit on this point or not, depending on your preferences (simple scalping, anticipations of a range breakout to make a new trend, lower timeframe trend following, etc...) Range example: Additional notes When you trade a divergence, try to always open your position when the RSI rebounds on the divergence line, and not after, remember that opportunities are everywhere, don't mind if you missed the last one, don't enter too late in a movement. Even if a range is a global horizontal movement, it's still composed of alternations of bullish and bearish movements between the same supports and resistances, therefore, you're of course able to trade it as trends on lower timeframes Don't forget to look at candles, which can also give you strong signals on important levels, on current or lower/higher timeframes. The price is always the key Of course, think about the DOW theory.
Education
by noop-noop
3
What are Supply and Demand Zones and How to Trade with Them?What are Supply and Demand Zones? ▷ Demand Zone (Accumulation Area): Accumulation comes from a Latin word meaning to increase something over time. A strong uptrend can only exist if buyers outnumber sellers. During a trend, price moves up until enough sellers enter the market to absorb the buy orders. The origin of strong bullish trends is called an accumulation or a demand zone. Demand Zone is where traders are willing to buy aggressively because the balance has shifted to the demand side. Here, buyers are dominant and sellers weak. The demand zone represents a period of implicit buying, typically by institutional buyers, while the price remains fairly stable. This area is characterized by mostly sideways price movement. Before a trend starts, price stays in an demand zone until the “big players” have accumulated their positions and then drive price higher. This can be contrasted with the Supply Zone, where institutional investors start to sell. ▷ Supply Zone (Distribution Area): Bearish trends are created when sellers outnumber buy orders. Then, price falls until a new balance is created and buyers become interested again. The origin of a bearish trend wave is called a distribution or a supply zone. At Supply Zone traders are willing to sell aggressively because the balance has shifted to the distribution side. Here, sellers are dominant and buyers are weak. Support and Resistance Levels vs. Zones If you have an idea of how to trade with support and resistance zones, you might find supply and demand zones very similar. You won’t be mistaken; Supply and demand zones are natural support and resistance levels. You’ll often find supply and demand zones just below/above support and resistance levels. Types of Supply And Demand Patterns There are two types of patterns: “Reversal” and “Continuation” patterns. While a pattern is forming, there is no way to tell whether the trend will continue or reverse. As such, careful attention should be paid to whether the price breaks above or below the zone. ▷ Continuation Patterns If price continues on its trend, the pattern is known as a continuation pattern. We have two continuation patterns: “Rally-Base_Rally” and “Drop-Base-Drop” ▷ Reversal Patterns When price reverses after a pause, the pattern is known as a reversal pattern. The established trend will pause and then head in a new direction as new energy emerges from the other side (bull or bear). Reversals that occur at market tops are known as distribution patterns. Conversely, reversals that occur at market bottoms are known as accumulation patterns. We have two reversal patterns: “Rally-Base_Drop” and “Drop-Base-Rally” How to Find Supply and Demand Zones? On a price chart, the demand zone is characterized by sideways price movement on above-average volume. When a stock price doesn't fall below a certain price level, and moves in a sideways range for an extended period, this can be an indication to investors that the stock is being accumulated by investors and as a result, will be moving up soon. The demand and supply zones are encompassing the base on the beginning of the move. The most important thing is to first finding a sharp move in either direction, after which you can identify its starting point and roughly define the supply or demand zone: • Look at the chart and try to spot successive large candles. • Find the base from which price started the quick move. Usually, before that you have a small sideways move, that is where your supply / demand zone is. • Draw the zone It is very hard to be precise with those levels and here it is more of an art than science. To make it easier to identify these levels, you can use another tool for confirmation. How to Trade with Them? One way to trade with supply and demand areas is reversal trading. After identifying a previous strong market reversal, wait for the price to return to that area. If a false breakout occurs, the chance of seeing a successful reversal is extremely high. Some candlestick patterns such as "Engulfing", "Pin Bar" and "Tweezer Blades" can help you identify trend reversals. Be careful, trading in the opposite direction of the trend is very risky. Technical analysts typically recommend assuming a trend will continue until it is confirmed that it has reversed. Trend reversal trading can be a profitable way to trade the markets. However, like any other trading strategy, there is a correct and a wrong way to do it. Pros and Cons Being able to recognize whether an asset is in the demand zone or the supply zone is helpful to investing success. Demand Zone is the origin of a big rally in price. Identifying this area could help investors spot good entry points into an investment before its price begins to rise. Once the price leaves an demand zone, not all buyers got a fill and open interest still exists at that level. Supply and demand traders can use this knowledge to identify high probability price reaction zones. As with anything else, supply and demand zones have their cons, as well. Understanding chart movements such as those seen in the accumulation area can work well during times of relative stability. Still, prudent investors know to pay attention to larger economic events that can quickly reconfigure charts (like the covid-19 epidemic) Key Points • Accumulation / Re-accumulation zones can becomes distribution/Re-distribution zones over a period in the Stock Market • The narrower a supply/demand zone before a strong breakout is, the better the chances for a good reaction the next time typically. • Good supply and demand zones are quite narrow and do not hold too long, which shows strong imbalance between buyers and sellers. • The stronger the breakout, the better the demand zone and the more open interest will usually still exist. • Always look for extremely strong turning points. They are often high probability price levels. • Each time the price re-tests a supply/demand zone, more and more previously unfilled orders are filled and the level is continually weakened. Conclusions Supply and Demand Zones are a great way to identify areas of buying and selling as well as support and resistance, but they work best when combined with other kinds of technical analysis.
BITSTAMP:BTCUSDEducation
by BobRivera990
8
Steps for opening a trade based on S&D Steps for opening a trade based on support and resistance - Mark support and resistance on the chart by spotting peaks and trough around the same price level - wait for price bounce from support level / or rejecting from resistance (reversal candlestick would be favoured) - place your stop loss under the support level and take profit below resistance level in case of Buy / place your stop loss above the support level and take profit above resistance level in case of Sell -Calculate your lot size depending on your capital risk ratio and stop loss pips (example if you are risking 5% of 1000$ so you are risking 50$, and if your stop loss is 50 pips so your lot size is 0.1) bear in mind your R:R ratio "risk to reward" so if you are risking 5% then you should target 10% profit of your capital
Education
by ChartDepth
⚡️♦️Breakdown of the Big Gold Short♦️⚡️Greetings To You Traders ▫️Let’s break down this superb trade timeframe by timeframe ▫️One of the the most important factor in our lives is Time. ▫️It also proves to be very important In our trades as well I will break down this trade in the same way I did when I took it on Friday I use just 4 things in my trading: 1. Recent price Structure ( Supply and Demand) 2. Overall Structure (Support and resistance) 3. Structural moves ( Higher Highs/ Higher Lows ( Uptrend) 4. Structural moves( Lower Highs / Lower Lows ( Downtrend) ▫️First Time frame : Daily Key factor : Resistance level Looking at the daily timeframe you could see that price had reached a previous support now turned into resistance This is a textbook market structure move and is very profitable if traded well ♦️♦️♦️♦️♦️♦️♦️♦️♦️♦️♦️♦️ ▫️Second Time Frame : 4 Hour Key factor : Supply Zone Looking at the 4 Hour time frame I saw a nice supply zone and all I was waiting for was the wick rejection and entry on smaller TF ♦️♦️♦️♦️♦️♦️♦️♦️♦️♦️♦️♦️ ▫️Third time Frame : 1 Hour Key factor : Structure move ( lower lows ) Look at the 1 hour time frame I observed that the market was now making lower lows Very typical for price to do so in a down trend and that is when I started loading up my lots My stops were above structure and I took the plunge ♦️♦️♦️♦️♦️♦️♦️♦️♦️♦️♦️♦️ ▪️I hope this breakdown can help you in executing your own trades too and using multi time frame analysis ▪️Be kind and leave a like and a follow : ) God bless you all Slick✨
OANDA:XAUUSDEducation
by Slickpapi
7