How to deal with levels of support and resistance?

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doaausef3li
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Joined: Mon Oct 29, 2018 2:06 pm

How to deal with levels of support and resistance?

Post by doaausef3li » Fri Apr 19, 2019 12:51 am

How to deal with levels of support and resistance?

A transaction with support and resistance levels using a chart-based auxiliary tool for verifying levels can help newer traders. The reason for emphasizing the use of auxiliary tools is that the levels of support and resistance sometimes generate false signals. That is why some of the cost-effective Action Trailers confirm the received signals with auxiliary tools such as chart patterns, Kendall patterns, oscillators, and momentum.

One of the most common methods for trading with key levels is that, following the price tendency toward the level of support or resistance, the trader will go with the flow of the market. When the price goes back to the level and starts to jump to the ascending, sell and sell when the price reaches the level of resistance and starts to jump to the downside. When you break the price of resistance, you must buy it and sell it when you sell it.

For example, the price touches a resistance and leaps downwards. The first Kendall, which is lower than the previous one, can be defined as the Trigger position of the shorts. At the same time, we stay in the market until the price reaches the next major support range and a curtain is closed above the previous candlel board. If this happens, we will close the position of the shorts. This method gives you a signal to open the position in the opposite direction. As a result, you can enter the Long position and repeat the same trend in the opposite direction.

Note that this example is a very simple example of the transaction method with levels of support and resistance, and the situation is far more complex in the real world of the Forex market. For this reason, we recommend that you combine support and resistance levels with other verification tools to make decision making easier. To better understand the combination of support tools and levels of support and resistance, we'll show you how to do this with the Momentum Indicator.
افضل شركات فوركس
The momentum indicator is composed of a curved line which, depending on the indicator setting, rises and falls around a level of 100 or 0.00. Momentum compares the current state of the price with its previous behavior in certain intervals and compares the curve line based on this. The main momentum signal is generated by moving the curved line from the level of the downward or upward direction, and then traverses the shorter or long position signal, respectively.
خبراء توصيات الفوركس
Due to this feature, the momentum indicator is a good tool for confirming signals and, of course, matches the support / resistance trading strategy. To combine this strategy with the momentum indicator, you must open a position each time the price reacts to the support / resistance level and this behavior is confirmed by the momentum indicator signal. If the momentum behavior is reversed, you should close the position.

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