Resistance points and how to spot them. Include results too
As you can see on the chart above, if you look at it in the long run(or trading long term), this is a result of a resistance point which is clearly labelled above.
First of all, how to identify a resistance point: the first thing you want to do when looking for a trade is to look for a resistance point, to tell if it is a resistance point or not, you have to see if there are any candles that stay around the same area or if you see a common high in the charts.
What to do if you see a resistance point: DONT buy it, yet. You should label the resistance point(like what I did in the chart above) and wait to see if the stock actually breaks the resistance point(if it does not break it after a long period of time MOVE ON to another company)it indicates that the market has the strength to become bullish. Hence you can buy the stock.
Effects of a resistance point: the stock would go downwards and you will have a loss. Unless it has an engulfing candle to counter the loss.
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First of all, how to identify a resistance point: the first thing you want to do when looking for a trade is to look for a resistance point, to tell if it is a resistance point or not, you have to see if there are any candles that stay around the same area or if you see a common high in the charts.
What to do if you see a resistance point: DONT buy it, yet. You should label the resistance point(like what I did in the chart above) and wait to see if the stock actually breaks the resistance point(if it does not break it after a long period of time MOVE ON to another company)it indicates that the market has the strength to become bullish. Hence you can buy the stock.
Effects of a resistance point: the stock would go downwards and you will have a loss. Unless it has an engulfing candle to counter the loss.
H
