Day Trading Support and Resistance Levels | Tradingsim Video Lessons
Hi Guys, I've put a warm video collectively on a great barter from before in the week. The trade illustrates how you can use key support and resistance levels on the larger timeframe charts (day-to-day, period) to get along roughly clues on intraday trading direction. Equally day traders, we need to be wish detectives and get all the facts in front of us so we can give lucid, fact based decisions I am reviewing a trade on FSLR which gapped down due to a ratings downgrade away a Wallstreet analyst. FSLR started the solar day down a mere 3.5%, about; however, it quickly made a pass over longer condition support levels and showed no fight at all. What started out as a 3.5% loss apace turned into a 10% loss.
When you consider this trade example, you volition notice that once you enter this trade, there were little, to zero reasons to get knocked out of the short. As I mentioned, when larger support and resistance levels become broken with ease, you need to understand the message that is being sent to you. Therein case, on that point was underlying weakness in FSLR which took it down daylong.
But, remember, hindsight is ever 20/20 and we don't have a crystal ball. It is leisurely to look at this video and enjoin "hey, I could have rode this short down the entire day and ready-made a boatload of cash". However, there were certain points where a base started forming and divergences in the RSI started appearing and it was judicious to take some profits. You will find out with experience that almost trades ut not come through this gentle for you. This just happened to constitute an extremely pale stock the full day. Expect a fight on most days.
Our trade example below uses our Tradingsim Market Replay tool. It is a market DVR which allows you to replay over 2 years of historical market trading natural action as if you were trading it live. Check it out if you are looking to learn how to day trade wind.
Nonclassical LESSONS IN THE COURSE: Awesome Day Trading Strategies
Source: https://tradingsim.com/blog/day-trading-support-and-resistance-levels/
Posted by: peekseuld1998.blogspot.com
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