Now that I've learned the basics, it's time to apply these useful basics of technical analysis tools.
Because we want to make it easy and easy, it has divided the trading in the support and resistance levels to two basic ideas. Two rebound and breakage.
As whose names suggests, is the style of trading depends on the support and resistance levels after rebounding.
Many traders make mistakes status of their orders directly at the support and resistance levels and wait until those orders materialize. Certainly this may be feasible for some time, but this type of trading methods are supposed to support and resistance levels will continue without the price up to these levels.
You may think. Why not Link is buying or selling a certain level on the trend line? this way. So I'll make sure to get the best possible price.
When deliberating, always what we want to tilt the odds in our favor, and find some kind of stress that support or resistance at that level will continue. It makes us rather than hold a deal at the right moment, we are waiting for more of this rebound before entering the market. Believing you when you do this, you avoid these moments that the price moves in quickly breaking the support and resistance levels. But the advice from an expert this may lead to a worse outcome.
Style coarse
The best way to Pricaots is buying and selling when the price goes reasonably support or resistance area. The keyword here is said to be reasonably well because we only want to enter when the price passes easily from a strong support level, or as well as a strong resistance point.
We want to become a support or resistance area like it had received a sudden blow of the world champion in wrestling. We want to Tnzoy pain because the price broke through.
Conservative style
Imagine this hypothetical case: you decided that EUR / USD, hoping to buy its price will go up after that, after rebounding from the support level. But what happened after that, he is breaking the support and is now maintains a loser status and your account is cracking Bbty.
What are you doing ?
Do you accept the loss and drain financial position.
Or do you continue to retain the deal in the hope that the price rises again.
If you have chosen the second option. You easily understand the kind of style of trading. Remember that when you close your deal, then you take the other side of trading. The closure or liquidation transactions EUR / USD means that you will sell the same amount. Le happened enough from the sale and liquidation of loss-making deals in this level of support, the price will turn and begin at once the landing phenomenon is the main reason to become a broken support level is the same level of resistance while the break.
I think you have guessed the meaning of this example, it is that he must be patient. Instead of directly entering at the break level. You must wait until the switch back to the level of support or resistance and enter after rebound in the price.