13. How to trade support and resistance levels

 

 

 

 

◆ Concept of support and resistance lines

 

In a nutshell, the highs are the highs and the lows are the lows. If you look at the chart above, the upper RESISTANCE is resistance and SUPPRT is support.

 

＊Concept [Related]

 

 

 

 

◆ Basic trading method

 

The market has a tendency to move within the support and resistance lines once the support and resistance lines are found, and this is also called a box-bound market. This is the most basic trading method you can take at this time.

 

＊Purchase Timing: Buy at #1

＊Sell Timing: Sell at #3

 

 

◆ Applied trading method

 

＊Buy timing: Buy at #2

＊Sell Timing: Sell at #4

 

The yield is lower than that of the basic trading method, but it is more stable. Buys enter an uptrend after setting a support line, and sells sell at an early stage when they are pushed down from the resistance line.

 

 

 

 

 

 

◆ Habits of support and resistance lines

 

A breakout of the support or resistance level indicates a significant decline or rise.

 

It would be nice to keep the support and resistance lines, but they will break someday. In this case, once the support and resistance lines are broken, they tend to fall and rise sharply. .

 

If you look at the chart above, the resistance line is broken and the price rises sharply.

 

 

 

 

 

They are the same.

 

 

 

 

 

 

 

 

 

◆ Resistance line trading method

 

In the chart above, the resistance line is broken and it rises sharply. The buying timing is best at #1, but it is difficult to buy in #1 knowing that it will break through the resistance line, so it is good to buy timing #2, which is the beginning of the long beekeeper breaking through the resistance line.

 

 

 

 

 

 

 

 

◆ Actual examples of support line trading law

 

Conversely, when the support line is broken, a large decline occurs. In this case, if you have a coin, you can sell when the support line is broken, but there is also a way to short sell using an overseas exchange that allows short selling.

 

The best time to make money from short futures trading is the period when the long-standing support line breaks and panic cells appear. The chart above is from the second half of 2018. Since November 2017, the previous month, it has been hanging at the $6200 support level, and has been moving sideways for the first year in the $6200 range.

 

 

In this case, looking at the $6,200 support level, if it goes down to the $6050 level, it is common to break the support level that has been running for over a year and easily fall below the $5500 level.

 

 

 

 

◆ Update of real-world examples of support trading