Advanced support and resistance strategy is a must-learn to actually work. Traders fail by expecting picture-perfect key levels, but markets are imperfect. There are many types of support and resistance levels, and different high-quality types have certain traits built into them, such as drastic steep reversals, multiple reversals and reactions of price, swing highs and swing lows, acting as both support and resistance, visually obvious and recently respected tests, and psychological levels and round whole numbers.
Advanced Support and Resistance: A Must-Learn Strategy for Traders
Understanding the Basics of Support and Resistance
Differentiating Between Resistance Levels and Support Levels
Drawing Rectangular Zones and Identifying Trade Opportunities
Breaking Through Resistance and Support Levels
Treating Support and Resistance Levels as General Areas
The Three Imperfect Support and Resistance Types to Look For
The Different Types of Support and Resistance Levels
Type 1: Drastic Steep Reversals of Price
Type 2: Multiple Reversals and Reactions of Price
Type 3: Swing Highs and Swing Lows
Type 4: Acting as Both Support and Resistance
Type 5: Visually Obvious
Type 6: Recently Respected Test
Type 7: Psychological Levels and Round Whole Numbers
Conclusion