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Add You - Support & Resistance - The Correct Way To Use It For Huge Profits
Here is a true story. My dentist did a “clinical” evaluation of my teeth. That is his fancy way to say he looked in my mouth and starred at my teeth with his own two eyes. He found no cavities in his “clinical” evaluation. I felt happy and relieved!But then he took a quick x-ray. Lo-&-behold, the x-ray immediately spotted a cavity hiding under one of my f
This confirms the breakout is strong and likely to continue. By WAITING for the stochastic to confirm price momentum either price strength or weakness and have confirmation that the odds are on your side.
Stops are obvious on both trades as you simply use the level that has broken or held and tuck your stop in behind it.
IMOPORTANT!
Validity is critical when trading in this way look for several tests over various time spans and if possible line up identical levels on the weekly
What you are about to read could empower you to build an Internet Home Business that creates massive amounts of wealth. Everyday millions of people wake up to an alarm clock to start the process of trading their precious commodity of time for money. You have the option of taking control of your time and doing more of the things you love or you can waste away years of
Here we are going to show you how to use support and resistance in two ways to make huge gains.
Validity of support and resistance
The way to trade support and resistance is to first only use valid support and resistance.
Many traders see a double top or bottom and consider this valid – its not.
You need to look at the price history.
See if this level has been tested in the past and twice is the minimum you are looking for.
As a general rule the more times it’s been tested the better and the bigger the gaps between the tests the more valid it is.
Support and resistance should have been tested several times over weeks or months for it to be valid.
Note:
You can’t use support and resistance in daily or hourly time frames it’s meaningless.
No one really looks at these levels as valid except of course day traders and day traders don’t make money - period.
Volatility in a day is random and this means using support and resistance is pointless.
Line up weekly and daily resistance
Its good if you can see daily and weekly resistance points line up.
Always use the weekly chart before switching to the daily when looking at support and resistance level.
Trading valid resistance and support
You have two scenarios
1. It holds and you can make a trade thinking support or resistance will hold
Or
2. You can trade a break of resistance.
In either scenario timing your entry is crucial.
If you think resistance or support will hold WAIT for price momentum to weaken into resistance and act on confirmation
You can so this by using the stochastic momentum indicator (we have written frequently on this and it’s the best indicator to time any trade and if you are not farmiliar with it learn about it now) watch for the stochastic lines to turn down and cross with bearish divergence and go short.
On the other hand.
If prices go through and break support or resistance only trade if stochastic lines cross and turn up with bullish divergence.
This confirms the breakout is strong and likely to continue. By WAITING for the stochastic to confirm price momentum either price strength or weakness and have confirmation that the odds are on your side.
Stops are obvious on both trades as you simply use the level that has broken or held and tuck your stop in behind it.
IMOPORTANT!
Validity is critical when trading in this way look for several tests over various time spans and if possible line up identical levels on the weekly
Over the years I have run local businesses and multi-State operations as a franchise system. One thing I learned early on in my 20s was that networking works at the local level and later I realized that networking at the National Level works well too.Why does networking work so well and why have social networks on the Internet surpassed all other websites now?
As a general rule the more times it’s been tested the better and the bigger the gaps between the tests the more valid it is.
Support and resistance should have been tested several times over weeks or months for it to be valid.
Note:
You can’t use support and resistance in daily or hourly time frames it’s meaningless.
No one really looks at these levels as valid except of course day traders and day traders don’t make money - period.
Volatility in a day is random and this means using support and resistance is pointless.
Line up weekly and daily resistance
Its good if you can see daily and weekly resistance points line up.
Always use the weekly chart before switching to the daily when looking at support and resistance level.
Trading valid resistance and support
You have two scenarios
1. It holds and you can make a trade thinking support or resistance will hold
Or
2. You can trade a break of resistance.
In either scenario timing your entry is crucial.
If you think resistance or support will hold WAIT for price momentum to weaken into resistance and act on confirmation
You can so this by using the stochastic momentum indicator (we have written frequently on this and it’s the best indicator to time any trade and if you are not farmiliar with it learn about it now) watch for the stochastic lines to turn down and cross with bearish divergence and go short.
On the other hand.
If prices go through and break support or resistance only trade if stochastic lines cross and turn up with bullish divergence.
This confirms the breakout is strong and likely to continue. By WAITING for the stochastic to confirm price momentum either price strength or weakness and have confirmation that the odds are on your side.
Stops are obvious on both trades as you simply use the level that has broken or held and tuck your stop in behind it.
IMOPORTANT!
Validity is critical when trading in this way look for several tests over various time spans and if possible line up identical levels on the weekly
Four-thirty-five in the afternoon finds me once again waiting for a train, returning from another hair-done, pressed-jacket, best-shoes-and-smile Job interview.The last hour sits heavily on my mind and thinking about it, I don't know what the outcome of the interview will be. "After-interview syndrome" leaves me feeling either on top of the world, visualising
Line up weekly and daily resistance
Its good if you can see daily and weekly resistance points line up.
Always use the weekly chart before switching to the daily when looking at support and resistance level.
Trading valid resistance and support
You have two scenarios
1. It holds and you can make a trade thinking support or resistance will hold
Or
2. You can trade a break of resistance.
In either scenario timing your entry is crucial.
If you think resistance or support will hold WAIT for price momentum to weaken into resistance and act on confirmation
You can so this by using the stochastic momentum indicator (we have written frequently on this and it’s the best indicator to time any trade and if you are not farmiliar with it learn about it now) watch for the stochastic lines to turn down and cross with bearish divergence and go short.
On the other hand.
If prices go through and break support or resistance only trade if stochastic lines cross and turn up with bullish divergence.
This confirms the breakout is strong and likely to continue. By WAITING for the stochastic to confirm price momentum either price strength or weakness and have confirmation that the odds are on your side.
Stops are obvious on both trades as you simply use the level that has broken or held and tuck your stop in behind it.
IMOPORTANT!
Validity is critical when trading in this way look for several tests over various time spans and if possible line up identical levels on the weekly
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If you think resistance or support will hold WAIT for price momentum to weaken into resistance and act on confirmation
You can so this by using the stochastic momentum indicator (we have written frequently on this and it’s the best indicator to time any trade and if you are not farmiliar with it learn about it now) watch for the stochastic lines to turn down and cross with bearish divergence and go short.
On the other hand.
If prices go through and break support or resistance only trade if stochastic lines cross and turn up with bullish divergence.
This confirms the breakout is strong and likely to continue. By WAITING for the stochastic to confirm price momentum either price strength or weakness and have confirmation that the odds are on your side.
Stops are obvious on both trades as you simply use the level that has broken or held and tuck your stop in behind it.
IMOPORTANT!
Validity is critical when trading in this way look for several tests over various time spans and if possible line up identical levels on the weekly
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This confirms the breakout is strong and likely to continue. By WAITING for the stochastic to confirm price momentum either price strength or weakness and have confirmation that the odds are on your side.
Stops are obvious on both trades as you simply use the level that has broken or held and tuck your stop in behind it.
IMOPORTANT!
Validity is critical when trading in this way look for several tests over various time spans and if possible line up identical levels on the weekly and the daily chart.
There is no simpler, easier way to make big profits with low risk than this method.
Any trader with a little practice will be spotting some great low risk – high reward trades.
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