oussama94
05-28-2017, 00:57
The more times a support or resistance level has been touched and confirmed, the stronger
it is considered to be. As a general rule of thumb, a price level is considered as a
support or resistance if it has been tested at least three times. Exceptions can be around
numbers such as EUR/USD 1.5000, 1.4900, 1,2000 etc or OILUSD $100, $200 etc
which are considered psychological supports and resistances.
Support and resistance levels found on longer-term time frames are considered stronger
and more significant. Start by analysing long-term charts and then move to shorter-term charts.
If you are trading in the direction of a trend and that trend approaches a resistance or
support, a good idea would be to tighten your stop loss to protect your profits in case
the price reverses against your trade.
Once a support level is broken in a downtrend, it often turns into a resistance level in
an uptrend (and vice-versa).
it is considered to be. As a general rule of thumb, a price level is considered as a
support or resistance if it has been tested at least three times. Exceptions can be around
numbers such as EUR/USD 1.5000, 1.4900, 1,2000 etc or OILUSD $100, $200 etc
which are considered psychological supports and resistances.
Support and resistance levels found on longer-term time frames are considered stronger
and more significant. Start by analysing long-term charts and then move to shorter-term charts.
If you are trading in the direction of a trend and that trend approaches a resistance or
support, a good idea would be to tighten your stop loss to protect your profits in case
the price reverses against your trade.
Once a support level is broken in a downtrend, it often turns into a resistance level in
an uptrend (and vice-versa).