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Trend Trading For Dummies by Barry Burns

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Chapter 11

Support and Resistance: Figuring Out the Best Price to Enter a Trend

In This Chapter

arrow Seeing the significance of support and resistance levels

arrow Monitoring previous major highs and lows

arrow Fulfilling prophecy with Fibonacci levels

arrow Mastering floor trader pivots

arrow Watching the waves

arrow Responding to big round numbers

Support and resistance levels are like floors and ceilings in the market. They are price levels at which market participants feel the market will have a difficult time rising above or going below.

For these reasons, support and resistance levels are good price zones to consider entering the market or taking profits.

In this chapter, I share with you some of the most common support and resistance levels used by the trading community.

Grasping the Importance of Support and Resistance Levels in Trading

Support and resistance levels are simply prices at which the people trading ...

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