The right way to trade Support and Resistance.

- By Scan a Trade Disclaimer : For Educational purpose only Learn more

1. Check Volumes on Breakout or Breakdown candle

A strong Volume bar on a breakout candle increases the probability of strong breakouts or breakdowns.

2. Support or Resistance on important moving averages

For example, If the price is taking support on a 20-moving average then when the price crosses a swing high it can give a good move.

3. Always check the type of wick in breakout candles.

If a larger wick candle is formed like a hammer or shooting star then higher chances are that breakout will fail.

4. Most breakouts fail.

As most breakouts fail so a good rejection at Support or Resistance can give a very good reversal move with a good Risk to Reward ratio.

5. Combine Rejection with candlestick patterns.

Suppose price breaks resistance and immediately gets rejected with a shooting star candle then it can result in a good reversal trade.

6. Pressure Plays.

Pressure plays are a very advanced type of rejections that can result in very powerful momentum trades. Check our Full article to see a detailed explanation with examples. Full Article

We publish similar Informational Content on our website