Support and Resistance

Now, the moment when the market forms a resistance, we can repeat the whole process. The moment we feel that the market is already safely settled on the possibility of indentation or puncture, we can immediately sell one contract and then let the market fall and get off at the moment to form a new S/R point.

So, you see, supports and resistance are very important points on the charts, that if you learn to recognize and use correctly, they can earn a lot of money. Again, however, again, it is first necessary to obtain the necessary charts and learn to feel each S / R levels by recognizing the fact that we have a greater or a smaller chance of success. There is no specific guidance on how to teach you this - except it requires hard work and efforts to understand graphs and S / R points.

One more essential advice:
It is very important to trace and identify all the supports and resistance in the history of the chart. Support and resistance created in the past can slow down the cost in the future. If the market in the past has created a stronger support or resistance, in the future this support or resistance may become an important point, which will either be punctured, or is it the price bounces.

It is also need to be noted that many times the S/R points tend to form so-called "false breakthroughs" or "false bounce". These are cases where the market will give us a clear signal that it is time to choose the S/R bounce. It is most important to be prepared for these options, and if the market thus maintained with ease discard "false" position with a small loss in the moment of puncture S/R levels which accept the new position, this time to go in the right direction.

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