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Support & Resistance (plotting (support and resistance levels are not…
Support & Resistance
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plotting
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Often times you will see a support or resistance level that appears broken, but soon after find out that the market was just testing it.
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At those times it seemed like the market was “breaking” support.
In hindsight, we can see that the market was merely testing that level.
One way to help you find these zones is to plot support and resistance on a line chart rather than a candlestick chart.
When plotting support and resistance, you don’t want the reflexes of the market. You only want to plot its intentional movements.
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tips
When the price passes through resistance, that resistance could potentially become support.
The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is.
When a support or resistance level breaks, the strength of the follow-through move depends on how strongly the broken support or resistance had been holding.
