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Chapter 8, Part V. Lines summary.

Discussion in 'Complete Trading Education- Forex Military School' started by Administrator, May 18, 2011.

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  1. Administrator

    Administrator Just Administrator :-)

    Sep 24, 2007
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    Part V. Lines summary [​IMG]
    Commander in Pips: We’ve learned the basics things about different types of lines. We even had advanced talks about them, and also we’ve investigated how lines could be traded in general. So I offer you to make some compact summary about all of this – just to put in order your knowledge.

    Pipruit: This is very good idea, because there was a lot of information in the current chapter, and it was very important, thank you.​

    Commander in Pips: So, let’s do this.

    Support & Resistance

    1. When the market reaches some level above it, that does not allow it to move higher, and turns to the downside – this particular level become a resistance. After a move lower, the market reaches some level below it that gives it support and turns from this level to upside move again. So, this level becomes a support. In fact, the market creates resistance and support levels over time during up moves and down move;

    2. Support and resistance are not precise numbers, they are more areas rather. And the larger your time frame, as wider this area is;

    3. It’s enough even single point to draw support or resistance line, but the more points are lay on the line - all the better. Support and resistance lines are horizontal. You may use a simple line chart built by close prices – to negate splashing among high or low prices and reduce noise in estimation support or resistance levels.
    #1 Administrator, May 18, 2011
    Lasted edited by : Feb 15, 2016
    Hamza Samiullah and fran alvarez like this.
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