An example of how to identify Support and Resistance , also how, where, when to enter a trade.
The market can be very tricky and very difficult to predict the outcome. But learning the basics of support and Resistance can give you 80% probability of winning. All the top traders use this method to predict the outcome.
When you look at the picture, you could see on the chart , Resistance ,Support and small circles where you can possibly enter your trade at this levels . But not every levels you can enter a trade, you need to confirm if the levels are valid or not.
Looking at support , the first circle can’t be valid coz it just got rejected , once the market price retrace to the same level twice then it got rejected and now the second circle makes it obvious that its a critical support. On Resistance you could see the same thing happening and it’s obvious you can enter a trade on the second circle. Now you need price pattern confirmation to enter a trade. Later, i will show how to identify price patterns and what it means.
Now making a decision to trade ,you need to look at how,where and when to take your position.
What type of trader are you ? You need to know all this to set up yourself . Are you a day trader or swing trader? What time frame is best for me? Do i have the capital to hold this trade position?
The chart time frame is 1day which means if i take a trade , my profits can be in days before execution. This means am a swing trader. All am saying is you need to check all this criteria before making decision on the market.
Follow,Like and comment your thoughts? As am going to post the second criteria on how to identify Support and Resistance . Let’s go!
…LJ!
Disclaimer; This content aims to improve readers, you should get more information from multiple sources (DYOR),before setting up your own strategy. All buying, selling and crypto investment activities are responsibility of the reader.
