publish2017-05-28 2:24 pm

backBack to the list of Articles

 SUPPORT AND RESISTANCE LINES

The financial markets have developed hundreds of analytical tools and instruments to recognize the market patterns properly and take advantages of it by anticipating the asset’s price movement. It recognitions allows stockbrokers to make an early trading movement and get the most profits from trading or investing.

What are lines?

The technical, financial analysis requires that traders review massive amounts of information in a very short period to keep them current and competitive. As a consequence, many tools have been developed and the easiest way to get a great deal of information, which can be read fast, consistently and accurately are the graphical representations or charts; price charts display the asset price during any studied period, and it can include many more data in it. In the same way, to increase the delivering information speed and its readability some lines are drawn on these charts with a color key and a uniform position on it. Therefore, lines connect or join two or more points or segments in a chart and represent a very specific parameter, e.g. a line is drawn at the open price of an asset during one week, or a line is drawn at the lowest price of an asset for any period. Each of them delivers faster the information and cover the preset parameter, series, and categories of it.support and resistance lines

WHAT ARE SUPPORT LINE ?

The support line is the linear graphical representation of a price point (e.g. nominal value of X at 5.45 USD) at which an asset has not declined or fallen to get below it for a period of time. It is located in the lower part of a price chart. The support lines are also known as the asset’s floor because it metaphorically prevents that an asset price moved further downward. The concept behind it is that the support line resists or pushes back the asset price to prevent it from falling at or below it. The demand for an asset at that current level would keep the price above it. The support lines deliver big data in seconds such as the lowest recorded price of an asset for a period, the past, or the starting point of a price down trending, etc.

support line

WHAT ARE RESISTANCE LINES?

The resistance line is the linear graphical representation of a price point (e.g. nominal value of X at 9.45 USD) at which an asset has not reached or fallen to get above it for a period of time. It is located at the Top part of a price chart. The resistance lines are also known as the asset’s ceiling because it metaphorically prevents that an asset price moved further upward. The concept behind it is that the resistance line resists or pushes back the asset price to prevent it from going beyond it. The demand for an asset at that current level would not be big enough to increase the price above it. The resistance lines deliver big data in seconds such as the highest recorded price of an asset for a period, the past, or the starting point of a price up trending, etc.

resistance line

In a nutshell

The support and resistance lines are commonly used in technical analysis, and they are represented in almost all price charts. It used is standardized and globally recognized for any trader or investor. They allow traders to identify properly when a price trend or a price correction will take place.

Support and Resistance lines Indicator in IQ Option

If you dont have IQ Option account please click HERE to Register.

join to Iq option broker

To mark support or resistance line you have to click on graphical tools in left bottom corner and select horizontal line, after click on your chart (you can move line or delete too)

how to setup iq option

Relates Tips and tricks...

publish2018-04-22 5:52 pm

Bytecoin Review - Cryptocurrency Guide

Bytecoin is the first type of cryptocurrency which ensures that secure CryptoNote protocol can be used for the security of users. It provides 100% untraceable transactions with the help of ring signatures and stealth addresses. However, the algorithm of Bytecon which is known as CryptoNight was created by BCN developers in collaboration with CryptoNote team.

Read more...

publish2018-04-21 10:09 am

Bitcoin Gold Review - Cryptocurrency Guide

Bitcoin Gold is a new type of cryptocurrency which was designed by Jack Liao. Jack Liao is Hong Kong based mining enterprises. However, this currency is a clone of Bitcoin. If you have 1 BTC, you will be able to exchange it on 1 BTG. However, the creator has designed this currency with a purpose to become a better version than Bitcoin. This project was launched on global marketplace back in November 2017. Now, it is ready to grow a new coin generation.

Read more...

publish2018-04-20 5:01 pm

Swissborg Review - Incoming ICO

 Swissborg is a bank that will offer money related advice, speculation administration and other budgetary administrations for cryptocurrencies. They have been building a robo-consultant since 2015, and have chosen to reorient this to serve cryptocurrencies as opposed to customary fund.

Read more...

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Economic Calendar

Powered by Myfxbook.com

The information contained in this website is for general information purposes only. This information is not an alternative to investment advice. Financial instrument and investment options are highly complex instruments, any potential client needs to study and fully understand the risk and financial implication before he engages or stars using any of those. We encourage searching for private and expert financial advice and getting sufficient knowledge before you start trading and every time you consider any financial instrument. Statrader.com is not licensed nor authorized to provide investment advice or investment services. Statrader.com does not promote, advice, or make any personal recommendation to clients to trade binary options nor to hire or work with any binary trade broker. This website is independent of binary broker featured on it. Before any client star trading or use any broker service, he must do his own investigation about broker legal license, registration and government authorization to ensure his suitability, and client must completely understand all the risks involve with any financial instrument and/or trading options or opportunities before he even considers start trading. The information is provided by Statrader.com, we make no representations of warranties of any kind, express or implied about the accuracy, reliability, suitability with respect to the website. Any reliance you place on such information is therefore strictly at your own risk. This Statrader.com has financial has financial relationships with some of the product you see on this website. Strader.com may be compensated every time a potential client click any of those links and/or open an account of hiring any of the services offered by third parties. Binary options trading entail a high risk for all potential clients to lose all of their invested money.

Copyright © 2017 · statader.com

Recommended Crypto Exchange for Beginners
buy btc with credit card
Popup