Methods you can apply to all markets.
- This chart is of a stock that is traded on the New York Stock Exchange (NYSE). Each bar represents a 30 minute time period and it shows approximately one month’s worth of data. The scale on the bottom of the chart shows the date and the scale on the right the price.
- For the last few weeks this blog was mainly following patterns that the Euro currency was plotting in relationships to symmetry and respecting previous support and resistance levels etc.
As you can see the same general principles can be applied to all markets and in all time frames.
- You should remember that resistance, often called overhead resistance, is where sellers are and can be related to the ceiling in your house. The support levels are where buyers come in and keep the price from going lower which you can think of the support area as the floor.
- I often talk about support areas becoming new resistance levels when the price breaks the support line. An easy way to remember that is to think of a two story house with the floor of the upper level being the support but when price breaks through or goes lower than the floor that area becomes a potential new resistance level where sellers may be.
- This material should be considered as 100 % educational and NOT investment advice. Your focus should be on identifying patterns and practice drawing the lines on your own charts.