trade in the direction of support

When trend finally turns back through the old price, skillful traders then use past action to identify effective momentum and swing trades. Battles between bulls and bears scars left unique landscape of charting features. For example, the gap provide one of the most profitable placement of all technical analysis. Long gaps rarely fill on the first attempt, but the gap with another. Use a tight stop and execute their trade in the direction of support when price enters the gap of high instability.

Past breaks in support identify low-risk short sales. The more violent break, the more likely to resist penetration. Head and shoulders, rectangles and Double Tops leave their mark with strong resistance levels. These patterns often print multiple doji and hammer falls before the final break as insiders clean out the stops at the extremes of the model.