The Forex Scalpers The Key to Support and Resistance

-

Introduction to support and resistance
Support and resistance probably you will have read a lot about it in this document and we will go back to basics and explain how we use it as professional traders. To this day, we still use support and resistance every day.

Support and resistance are very important price levels that we have to take into account at all times. we as scalpers and swing traders use support and resistance on almost all time frames you can use it on 5m 15m h1 h4 the daily etc etc Below is an example of support and resistance on the daily time frame to recognize the daily range and to know where we are.


You also see that support and resistance levels are where the price returns with some regularity and then breaks down or reject this we see in the rejection candles the candles with beautiful long wicks / tails which means that the seller loses from the buyer if we hit the support. and the buyer loses if we hit resistance and so the seller takes control again. the higher the time frame the stronger the levels become.


Above you see the 4 hour time frame, you can see that we have a big pips range and it is a kind of outlined picture now. we see that the price range between support and resistance. you will also notice that the price is sticking in the middle and then drops slightly. the market I can not say it often enough works in waves pullbacks to continue the momentum / trend you will also be able to place it here to recognize it as a kind of traffic or price zone where you could put your take profit always look to the left the past regularly repeats itself. also make sure that if a candle goes up from a support you wait for the retest for the best price the momentum is already formed because the rejection candle is formed with the pinbar as previously explained buyers take the control close above support price back comes for a retest / lastkiss (you have read about this in naked forex book) and then presses momentum / trend. at all times make sure that you trade with the trend, here I mean buy in a buyers market (uptrend) and sell in a sellers market with a downtrend

Difference between S & R and Zones
As you can see support and resistance look like zones, but the difference is that not every support and resistance is a zone. For example there are other tops in this pictures where price turns, these can also been seen as a support and a resistance, but not as zones.


Okay back to the daily time frame usdcad I have mentioned a breakout here a couple of times here the price is finally broken by support of resistance and then support resistance of resistance word support and vice versa. support and resistance can be found on any time frame but as mentioned earlier, the higher the time frame the stronger a support and resistance.

Comments

Post a Comment

Popular posts from this blog

Kokology Questions & Answers

-
[These are extracts only, to see the full details kindly purchase the original book] Kokology is the study of kokoro (Japanese: 心) which in the aforementioned language means "mind" or "spirit". ... The books were published in 1998 in Japan and became a Japanese bestselling phenomenon. The books were translated and became available in the United States in 2000. Below are some questions and answers for sharing: A Desert Journey Boring class settings, you drifted away and enter the eternal desert... 1. You are riding a camel and you are near exhaustion, what will you say to the camel? 2. Before you die of thirst, a traveler point to you a oasis, who is this person you know? 3. You finally come to your destination which is a town, what is your feeling? 4. After you dismount, another person took over, who is this guy? - 1. What happened when love is lost? 2. Who always help or comforted you? 3. What is your feeling after getting past lost love?...
Read more

Neuro-Linguistic Programming Models Summary (02 of 14)

-
GeneraliSation The The Meta Model generaliSations make explicit the way we summarise and categorise our experiences. Generalisations are basically the rules we use to manage life. There are usually exceptions or counter examples to rules. These rules and categories create self-imposed or company wide limitations. Examining these limitations is a powerful problem solving strategy. By generalising one or a few experiences, we can figure out what to do in a different experience. We learn to drive a particular car, and then use that experience to drive a new one. If we weren’t able to generalise, we would have to learn how to drive all over again. Problem Solving Examining categories and generalisations is an excellent creative problem solving strategy. What are the experiences that come to mind when you think of money for instance? We typically use an emotionally charged experience to stand in for all our experiences in a category. We generalise and categorise all kinds ...
Read more

Neuro-Linguistic Programming Models Summary (11 of 14)

-
The Inner Hero Pattern Beat the drum and let the poets speak. This is the day of purification for those who Are already mature and initiated into what love is. No need to wait until we die! There’s more to want here than money And being famous and bites of roasted meat. --Rumi Life can be lived in many ways. You can make it about making money or winning at all costs, or pleasing other people, or perhaps never standing out. Or you can live your life as a great journey of consciousness, one filled with many challenges and surprises, one that makes a positive contribution to the world. I want to talk here a bit about these different paths, emphasising that the Self-Relations approaches of Generative Self and Generative Trance are especially tools for supporting the latter path. Life as a journey has been described by many people, most notably the mythologist Joseph Campbell.  Campbell (1949; Gilligan and Dilts, 2009) studied the stories of many different cultur...
Read more