Conceptually supports and horizontal resistors are true pillars of the analysis, whether you are an operator who uses fundamental analysis or technical analysis. Always know the map of the territory where it will operate.
Before producing a development on the concept of dynamic analysis we review the following concepts that are basic to the understanding of the topic.
Support and Resistance, are areas where the market in the first case we see the strength of the supply side is a force that slows demand. That its action is recorded in the memory market as an area of congestion. Then, Resistance is a price where the demand is to find a braking force sufficient to roll back prices and that is also registered as an antecedent of the market.
We know that the more times the price is refracted by these areas of support and resistance, the more valid will break your back.
We know the horizontal supports and resistances in the table below we see how they work.
In Chart 1 Euro / Dollar, we see areas where supply and demand debated who won and in the future will be respected by the price curve. Conceptually supports and horizontal resistors are true pillars of the analysis, whether you are an operator who uses fundamental analysis or technical analysis. Always know the map of the territory where it will operate.
Normally the questions most frequently manifest itself as time compression or graphic is the best track of the supports and resistances. Regardless of its strategy to be recommended from the general strategy to the particular strategy, i.e.to use a deductive method for the analysis. Determine which are the S and R chart week, day and 4HS and frame their operations within any rebounds in those areas, or outside, i.e.after their breakage.
Because we say it is essential to base its strategy on supports and resistances. Well, you can check almost empirically with a single visual exercise that prices will tend to repeat their action on certain areas of price in the past that are and will be central points within the price chart. This is only the third principle of Dow, which says that the market is memory and its corollary is the concept of Support and Resistance that are complementary in a cause-effect relationship as a medium to be achieved becomes resistance and subsequent vice versa.
As mentioned above, analysis of media and is resistant to all previous assumptions about the market (bullish)
We will classify Charts in the forms of S or an R chart.
1. Supports and Resistances Horizontal
2. Supports and Resistances Mathematics
3. Supports and Resistances Linear projective
