Description: This strategy involves entering a trade when the asset price moves outside a specified support or resistance level with an increase in trading volume
Why is it suitable for beginners:
Clear Entry and Exit Points: Using an impulse trading strategy provides clear entry and exit points which makes it easier for beginners to make trading decisions.
Easy setup thanks to predefined levels: Beginners can easily set up this strategy using predefined levels of support and resistance.
It can lead to big gains if the impulse is strong: If the impulse that occurs outside the support or resistance level is strong, it can lead to big gains for traders.
Basic tools:
Support and Resistance Levels: Used to identify price levels that can lead to rallies.
Indicators
Volume: Used to confirm the strength of the rally by monitoring the trading volume.
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