Tredimo – Support and Resistance Trading

Tredimo – Support and Resistance Trading

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Description

Tredimo – Support and Resistance Trading

Trading support and resistance

Find resistance levels

You can find the highest price level by opening your chart.

Put a line on the chart and move it to the first resistance level.

  1. Line drawn at top of chart that you will move down.
  2. Price level that you will move the line down to.
  3. The green shaded area is identifies the first resistance level.

Place a second line on the chart and move it down, below the current line you already have on the chart, until you find the next resistance level.

  1. Line drawn at the top of the chart that you will move down.
  2. The first resistance line that you have drawn.
  3. Price level where you will move your line down to.
  4. The green shaded area highlights the second resistance level.

Continue to place resistance levels on your chart until you get to the current market price.

You don’t want to put too many resistance levels on your chart.

  1. Line drawn at the top of the chart that you will move down.
  2. First resistance line.
  3. Second resistance line.
  4. Price level you have moved the line down to.
  5. The green shaded area shows the third resistance level.

Work your way up from the bottom and place support levels

Place a line on the chart and move it to the support level.

  1. Line drawn at the bottom of the chart that you will move up.
  2. First support level where the line has been moved up to.
  3. Red shaded area shows the first support level.

If you want to go up to the next support level, place another line on the chart.

  1. New line drawn that you will move up.
  2. First support line
  3. Second support level where you move the new line to.
  4. Red shaded area shows the second support level.

Place support levels until you reach the market price. Pick the most significant support levels because you don’t want to place too many support levels on the chart.

  1. New line at the bottom that you will move up to a new resistance level.
  2. First support line.
  3. Second support line.
  4. Third support level that you will move the line to.
  5. and 6. Red shaded areas show the third support level.

Once you have finished, you have a price chart with a number of support and resistance levels that will look similar to the chart above.

The next lesson will teach you how to trade with support and resistance levels.

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