Minute chart trading method for day trading
Minute chart trading method for day trading - Support & Resistance
1. Identify Support & Resistance
The line connects with the two price reversal points called support line or resistance line. When the reversal turns to the downtrend becomes the resistance line. When the reversal turns to the uptrend becomes the support line, as shown in the figure:
2. Make Positions and Set Stop Loss
Make short positions near the Resistance, and set stop loss above it. Then close out positions before the price reaches the support level.
Make long positions near the Support, and set stop loss below it. Then close out positions before the price reaches the resistance level.
In terms of price action analysis, your profit target should not be above strong resistance or strong below support.
This is a very simplified method, Support & Resistance can be found in all sorts of market environments.
And this method is very effective, even if the direction of our position is wrong, we can just stop loss and close out. The loss is in our control.
One minute price chart with Support & Resistance, trading easily and controllable. It is the first choice of foreign exchange trading strategy and entry-level trading method for novices.