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First attempt strategies

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13 years 4 months ago - 13 years 4 months ago #272 by remo
If you know of a strong resistance or support level on a share or index then what I do is I always short at resistance and buy at support
On the first attempt of that level. It has to be a strong level to attempt this. I find that this is very profitable doing this but you have to be good at recognising supports and resistances.
The term Supports and resistances means exactly that. The idea of a support level means its going to bounce when it hits that level and vice versa for resistance.
This works really good when you have 2 or more levels of support or resistances in the same area.
Ex
Gap resistance and a 200ma at the same level. 2 levels meeting
Fib support and 50 ma and horizontal support. 3 levels meeting
Target of breakout and previous high. 2 levels meeting

Obviously the list can go on.

I'm sure you understand what I'm getting at.

I'll upload some charts examples when I get the chance...

Remo
Last edit: 13 years 4 months ago by remo.
The following user(s) said Thank You: madmaxx, Broad-rock, annes goal, Soulvibe, Patient Penguin

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