3 Things Price Can Do At Support And Resistance Levels

Trading support and resistance levels is a common approach to trading. Whether it’s a viable strategy is another question and much of that will depend on the trader.

One of the biggest issues with support and resistance is defining levels that actually mean something.

How do you know that your support or resistance lines are any better than a random line?

If you were to turn off all the bars on your screen, toss up some horizontal lines and then turn the bars back on, you would see that price has miraculously bounced from the line you have drawn.

To add to that, many traders are aware of the different basic ways a market can respond to a technical level, they often are not taking it into account when executing around a level.

- See more at: https://www.netpicks.com/how-markets-respond-to-support-and-resistance-levels/

Licence : All Rights Reserved

Please Login or Signup to add comment