LONG AND SHORT TRADES - TEXT VERSION 2

LONG AND SHORT TRADES - TEXT VERSION 2

SUPPORT is that the doubtless low value wherever we would like to shop for the currency combine to open our position.

RESISTANCE is that the doubtless high value wherever we would like to sell the combine, shut our position. and take profits.

When you ar merchandising (or going short) the combine, the definition is reversed:

SUPPORT is that the doubtless high value wherever we would like to sell the currency combine to open our position.

RESISTANCE is that the doubtless low value wherever we would like to shop for back the combine and shut our position and take profits.

This should not be confusing as long as you perceive that S/R is conceptually identical for long or short trades. In alternative words, we define:

Support as wherever you wish to open a grip as a result of it’s the doubtless {bargain|discount|cut value} value or “floor” that supports price from moving against you and protects you from potential losses. The nearer your entry is to support, the smaller your losses. 

Resistance is that the zone wherever you wish {to shut|to shut} a grip as a result of it’s the doubtless best value you'll expect to urge after you close your position; it’s the realm sort of a ceiling that resists more gains. 

Support is wherever you wish to open or enter a grip. Resistance is wherever you wish to shut or exit a grip for the foremost profit. For long positions resistance is usually more than support. for brief positions support is usually more than resistance.

In alternative words, you mostly enter close to support and sell close to resistance. 

With these definitions of S/R processed, we will currently justify why distinctive robust S/R is that the key to creating high-yield, low risk trades.

INSTRUCTOR'S NOTES

This lesson aims to form a straightforward purpose concerning the quality of S/R levels to commerce profitably:

It is sensible to travel long (bet that the pair’s value can rise) or shut shorts (bets that the pair’s value can fall) getting ready to support, level that the value shouldn't fall abundant below.

It is sensible to travel short (bet that the pair’s value can fall) or shut longs (bets that the pair’s value can rise) getting ready to resistance, level that the value shouldn't rise abundant higher than.