Hi. I just have a question about te resistance lines I drew on a chart. What would you think? Whould you consider all of them to be resistance lines and not going long yet or i drew to many and some of them are not correct? Thank you
When following an uptrend I ignore resistance lines: when following a downtrend I ignore support lines.
If there isn’t an uptrend, why be long? If there isn’t a downtrend, why be short?
Tell me if i am correct please. Now it seems that the big downtrend (the one that started in 15th of january) has been broken and from 6th of february our guy is in an uptrend, but right there in 23 of february started to consolidate. But in the same time is in a falling broadening wedge ( green and white line) and in the same time the green line could be the neck of a H&S pattern and if those are broken it could have a run. up.
Add some moving averages to add confluence to your trades. Looks like the currency pair is in a downtrend. Your reward should be double your risk in your stop loss.
I too make sure to add confluence in the moving average so that if the price hits the MA, the support and resistance levels are stronger. I simply follow that confluence areas are very rare but strong.