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To trade support and resistance effectively, you only need to identify the critical support and resistance zones. These zones are found on daily, weekly and monthly charts. Just look for where prices reverse twice and above, then come down to lower time frames execute your trades there.
To trade support and resistance effectively, you only need to identify the critical support and resistance zones. These zones are found on daily, weekly and monthly charts. Just look for where prices reverse twice and above, then come down to lower time frames execute your trades there.
I use some special candlesticks for trading support and resistance. These candlesticks include big shadow (bullish and bearish engulfing), kangaroo tails (which include gravestone doji, dragonfly doji, shooting star, and typically hammer) as well as railway track. These candlesticks at support and resistance zones are catalysts. At the support, wait for a bullish candle to form after any of the catalysts above before entering a trade and vice versa.
Hi, Thanks. Can you help to find out breakout and false breakout, most of the times I fail. If you could help me in finding false breakout it would be great. Thanks.
Hi, Thanks. Can you help to find out breakout and false breakout, most of the times I fail. If you could help me in finding false breakout it would be great. Thanks.
There are two ways to trade Breakout. (1) Aggressive approach, (2) Last-Kiss approach. Aggressive approach means to enter a trade immediately after the breakout "which always fail". The best way to trade breakout is to use the Last-Kiss approach. Last-Kiss approach means you wait for the breakout, after the breakout, wait for the trend/price to move away from the support or resistance point and come back to re-test the support/resistance point. Then watch out for reversal candlestick before executing a trade. For a fake breakout, instead of the trend to touch the support/resistance point and turn back (re-test), it will break/go back into the consolidation zone. See the examples last-kiss bellow
I use some special candlesticks for trading support and resistance. These candlesticks include big shadow (bullish and bearish engulfing), kangaroo tails (which include gravestone doji, dragonfly doji, shooting star, and typically hammer) as well as railway track. These candlesticks at support and resistance zones are catalysts. At the support, wait for a bullish candle to form after any of the catalysts above before entering a trade and vice versa.