What's new

Tutorial Support & Resistance systems

2.00 star(s) 1 Vote

cstrading

New Member
Support & Resistance systems are designed for sideways or directionless markets, and
they typically have the following attributes:
. They buy low and sell high in an attempt to take advantage of the sideways price
movement characterizing directionless markets.

. They have a high number of winning trades, with small profits on each trade. They
sell as the market goes higher and take small losses until the market finally turns
down and results in a profitable trade.
. They are easier to trade emotionally.
By design, these systems miss the big move

—they usually have small profits and larger losses as markets trend. The system keeps shorting a market that is in an uptrend or buying a market that is in a downtrend. Therefore, when traders use Support &Resistance systems, they use them within a group of systems that also includes trending systems and perhaps one or more volatility systems.
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account on our community. It's easy!

Log in

Already have an account? Log in here.

Similar threads

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)

Top
AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock    No Thanks