Introduction to Strategy and Style

Part 1

🚀Support and Resistance

🚀 How to trade the BOUNCE or the BREAK

Part 2

Understanding the use of trading tools (Indicators)

I. Moving Average

Ii. Exponential moving average

When the price moves up and then pulls back, the highest point reached before it pulls back is now resistance.

As the price continues up again, the lowest point reached before it climbs back up is now support.

Support and Resistance are Zones

One thing to remember is that support and resistance levels are usually not exact numbers.

To help you filter out these false breakouts, you should think of support and resistance more as “zones” rather than concrete numbers.

One way to help you find these zones is to plot support and resistance on a line chart rather than a candlestick charts

You buy when the price is at the support level

Another thing to remember is that when price passes through a resistance level, that resistance could potentially become support.

The same could also happen with a support level. If a support level is broken, it could potentially become a resistance level

How to Trade Support and Resistance

Trading support and resistance levels can be divided into two methods

The “bounce“

The “break“

We have two types of supports and Resistances

🚀Minor Support and Major support

🚀Minor resistance and Major resistance

Minor support or resistance is a level that is considered very weak (These are characterized usually by less than 2 points before being broken). Major support or resistance is a price level that is considered to be very strong (These are characterized by at least 3 points “bouncing” off these levels)