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How to trade based on support and resistance
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How to trade based on support and resistance
Most traders in the financial market rely on following the support and resistance levels very carefully to rely on in their trading, for a very simple reason, which is that when prices tend to bounce upward from the support level, then the natural reaction is to search for reasons to buy, and these are usually represented by: The reasons for the emergence of a bullish pattern, such as an inverse head and shoulders pattern or a double or triple bottom pattern, or due to the emergence of a bullish pattern from Japanese candlestick patterns, such as a hammer pattern.حساب نقاط الدعم والمقاومة
On the other hand, when prices tend to bounce back from the resistance level, the natural reaction is to look for reasons to sell. These reasons come in many sizes and shapes, and include the appearance of a head and shoulders pattern, a double top pattern, or a triple top pattern. Other reasons for selling are the appearance of the pattern. Bearish candlestick patterns, such as the shooting star pattern.
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