Types of Support and Resistance (S/R)
Now you understand some basics about charts, support and resistance (s/r), and risk and money management (RAMM). You're ready to get to the meat of TA and learn the tools to identify the likely support area at which to enter or open a position and the likely resistance zone at which to exit or close it.
This chapter will cover:
I have selected the following tools and indicators of s/r based on importance and ease of use. The idea is to give you a powerful toolkit you can learn quickly and easily.
Though opinions about the value of TA vary, most would agree it's necessary to know if you're buying low or selling high. And though many disparage TA, I've yet to meet a serious trader or investor who doesn't use it. The main reasons include: