Trading Process and Strategy

Support Becomes Resistance – A Trade Example

Once broken, key areas of support will often act as resistance. Vice versa for key areas of resistance, which when broken will become future support. Let’s look at an example, of support becoming resistance. The beauty of this example is that it’s a challenging one from a trade management perspective (especially for people like me…

Trading Process and Strategy

Breakout Pullbacks – Sometimes They Come Fast

Unlike most Support & Resistance traders, I prefer not to automatically enter on a breakout (although I won’t absolutely rule it out, such as when price bases before the breakout to allow a good low-risk position for a stop). Instead, I watch the breakout for signs of one the following opportunities – a breakout failure…

Trading Process and Strategy

How Support and Resistance Areas are Created

Question: Hi Lance, In his text on support and resistance, Mike Reed talks about traders hoping the market will return to a level of support or resistance  so they can break even in that trade. So are levels of support and resistance more to do with the behavior of traders than the actual value of the dollar, Thanks from Brian.    Answer:

Trading Process and Strategy

Support and Resistance 4 – Round Numbers

Welcome back to another installment of support and resistance. The main chart features that I’m looking for in identifying support and resistance areas are the swing highs and lows, and areas of congestion. These have been covered in previous articles. If you haven’t seen them, please review them first: 1 – Support and Resistance –…

Trading Process and Strategy

Support and Resistance 3 – Areas of Congestion

Welcome back to the third article in the current support and resistance series. In the last article we discovered how swing highs and lows lead to the development of support and resistance areas, through the actions of traders – either through an expectation of these areas holding, or through traders being psychologically forced to exit…

Trading Process and Strategy

Support and Resistance 2 – Swing Highs and Lows

In the last article I stated that support and resistance (for me) is based on previous swing highs and lows, areas of congestion, round numbers and gaps. We’ll now review these types of support and resistance, discussing how to identify them, and how they formed. In this article we’ll start with my favorite support and…

Trading Process and Strategy

Support and Resistance – the Greatest Trading Tool

Despite all the hype from the internet marketers who try to sell you the latest trading ‘secrets’, the fact is there are NO secrets. Identify setups which provide the potential for lower risk and/or higher probability trades. Enter and manage those trades in a consistent and disciplined manner. Minimize risk. Manage your money. Manage your…