As price moves up and down on our charts,it encounters “barriers” along the way. If this barrier acts like a floor, keeping price from dropping any lower, it is known in trading terminology as support. When it acts more as a ceiling and stands in the way of upward moves, it is called resistance.What is interesting to note is that if a certain price level acts as resistance on the way up (such as the doji candle which highlights a moment of market indecision on the way upat 1.4848 in the example on the right), then it also has a high probability of acting assupport on the way back down (and viceversa).
What is interesting to note is that if a certainprice level acts as resistance on the way up
(such as the doji candle which highlights a moment of market indecision on the way up
at 1.4848 in the example on the right), then italso has a high probability of acting as
support on the way back down (and viceversa).
Please see PDF file attached below to view full article.
Add a Comment
Successfully Reported
Thank you. This comment has been flagged for a moderator.