It’s important to understand market movement in and around trendlines, support and resistance areas
These are tools that traders have been using since the beginning of trading time. They held value years ago and today are still just as valuable in understanding the market flow.
Support and resistance levels will give a trader a really good idea where price has a high probability of stalling, turning around, or taking off. Ignoring these levels at the time of a trade would mean that the trader is taking an unnecessary risk and placing an uninformed trade. For me they act as like a road map to trading more successfully.
Support, resistance, and trendlines are not difficult to learn, and if you can get that extra edge in your trading, you should go for it.
When we trade, looking for specific setups that are presented to us with indicators, price action or whatever your strategy is. Once we have determined that there is a trade setup, we will do very well to verify the trade signal by using either Support, Resistance, or a Trendline.
We will find trades that seem valid, but we won’t want to take them because there is a trendline or an area of support or resistance in the way. Shortly after the trade not taken, we usually see that price bounces off these levels and the trade we would have taken would have lost.
This Support, Resistance and trendline approach that you are going to learn is going to be an invaluable addition to any trading system or methodology. See the video below.