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1. Beginner Strategies

Support and Resistance Trading Strategy

In order to fully understand the core of the support and resistance trading strategy, traders should understand what a horizontal level is. A horizontal level is:

  • A price level indicating either a support or resistance in the market. In technical terms – price lows and highs respectively.

The term support indicates:

  • The area on the chart where the buying interest is pointedly strong and exceeds the selling pressure.

The Resistance level indicates:

  • An area on the chart where selling interest overpowers buying pressure. It is usually marked by previous peaks.

In order to develop a support and resistance strategy traders should be well aware of how the trend is identified through these horizontal levels.    

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