Price Action: Find Strong Levels for Quality Signals
Good afternoon, good evening, good night. It is no secret that not all yogurts are equally useful. It is the same with support / resistance levels in Price Action trading: there are weak levels that are easily amenable to breakdown, and there are strong levels that are a good support for high-quality signals and serve as a good point for exiting deals.
So how do you find strong levels? What is worth paying attention to? This will be discussed in our today's video tutorial.
If we summarize all of the above in the video, then we can distinguish the following signs of strong levels:
- The level works the better, the more people "believe" in it.
- Quality levels should be striking, to be "obvious."
- If some other level from the technical analysis is superimposed on the support / resistance level (for example, the Fibonacci level), or a moving average, or a level from a higher timeframe, or a round price value, then the significance of this level is much increased.
In more detail, all this, including finding strong levels in practice, is discussed in the video tutorial.