Support resistance and how to draw a trendline

Support resistance and how to draw a trendline

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What is the theory of supply and demand: understand and find the price zones that occur between buyers and sellers. The side that has more pressure will lean towards that side.

Draw price trends to know if the market is up or down => buy or sell.

Draw price trends
Draw price trends

Connect the peaks to determine the resistance zone

Connect the bottoms to create a support zone vĂ¹ng

Connect the bottoms to create a support zone
Connect the bottoms to create a support zone

At these lines, it is difficult for the price to pass through the base, you can place from these lines to trade, but you have to set a stop loss so that if it breaks, you will lose less.

Trendline: Rising support points will form an uptrend and vice versa

Trendline
Trendline

Retest phase: investor’s hesitation phase.

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