SUPPORT AND RESISTANCE FLIPZONES
What a beauty, looking at this EURUSD chart, WHY?
Simply because it shows that Support and Resistance is in everything ie Horizontal lines, Trendlines, RSI, MACD, Bollinger bands, Moving Average etc
As a trader using some sort of tools, indicators etc, you just need to study it in order to know the ins & the outs. Some indicators work well with a few while some indicators are in the opposite direction with others.
Whatever the case might be, just ensure that you understand what you are doing,
A quick question as I have your attention, if you don’t mind.
WHAT DO YOU DO WHEN A LEVEL FAILS?
Do you re-draw your levels OR leave the NOW failed level to see what happened after?
You’ll be amazed/blown away to know that these so called levels can easily act as a means of re-entry but in the opposite direction.
EVER HEARD OF FLIPZONES?
Have a look at the beautiful chart right infront of us and you’ll see a typical example using trendlines. Notice when it fails to hold it then comes back and acts as a launching pad to the opposite direction.
This can also be used in conjunction with other tools or indicators for the sake of confluence as stated above.
Trading doesn’t have to be difficult at all, we just have to understand how it works and simply go with the flow