the price rose until it encountered a strong resistance, then it reversed, seeking the previous support. Upon reaching the support, it held and showed a reversal signal. The purchase was executed, and a new target was set at the previous resistance.
tell me if you trade this way, or are you learning now?
The sale follows immediately after touching resistance; if the price breaks through, a new purchase is made. If the price drops, observe whether it holds at the previous support.
Tell me if you knew this and already trade this way?
Here we have a purchase made in the support region, with the sale executed in the resistance region. Subsequently, it was observed whether the price would return to the support region or manage to break through the resistance. Since the price demonstrated strength and broke through, a new purchase was made, as the former resistance now began to act as support.
The importance of marking supports and resistances on the chart
Here we see two trades. In the first, a purchase was made at the top, near a resistance level. Certainly, this trade was executed on impulse, believing the currency would continue rising. However, since the price lacked the strength to break through the resistance, it returned to the support level. At this point, the trader panics and sells to avoid losing more money. This is how capital disappears, as each mistake of this type leads to buying high and selling low.
Next to it, we see another trade: a purchase made in the support area and a sale made in the resistance area. In this way, the trade occurs in favor of the trend, increasing the chances of success. When you act this way, your profits tend to grow gradually and consistently.
Before trading, always mark the main resistances and supports that the price has left in the chart's history.
Comment below if you've done this before? But now you'll trade the right way. 📊📈
she does not have enough strength, because above is the MA21 on the 1-hour chart, those who stay in this region waiting for continuity will turn into liquidity.
#Estudo When the price rises and encounters resistance, it is common for a pullback to occur. If this pullback respects the 50-period moving average, indicating support, and the price rises again, recovering and staying above the 20-period moving average, the uptrend structure remains valid.