OP 31 October, 2023 - 10:01 PM
(This post was last modified: 01 November, 2023 - 11:36 AM by IDaredevil. Edited 1 time in total.)
This strategy focuses on price retracements. A retracement occurs when the price breaches a support line (or breaks above a resistance line), and then reverts to that line, which now acts as a resistance (or support) line. We identify retracements based on key reversal patterns in technical analysis, which enhances reliability. The resistance line represents a level above which the price attempts to break through, and the support line is a point below which the price seeks to break through.
A retracement signifies a significant change in the asset's trend, highly sought after by traders who can, depending on the factors explaining the price decline, position themselves long or short on the asset, directly or through a derivative product, with or without leverage.
In an ascending trend, the price rises above the resistance line and reverses. After the reversal, you can take a long position, following the primary direction of the ascending trend.
In the case of a descending trend, the price is below the support level, reverses, and returns to the support line. Here, we encounter a retracement, and you can opt for a short position, following the primary direction of the descending trend.
Retracements occur when traders book profits, and futures prices move in the opposite direction of the initial breakout. If you missed the initial price movement, you need to wait for the price to return to support and resistance levels to open a trade at a more favorable price."
A retracement signifies a significant change in the asset's trend, highly sought after by traders who can, depending on the factors explaining the price decline, position themselves long or short on the asset, directly or through a derivative product, with or without leverage.
In an ascending trend, the price rises above the resistance line and reverses. After the reversal, you can take a long position, following the primary direction of the ascending trend.
In the case of a descending trend, the price is below the support level, reverses, and returns to the support line. Here, we encounter a retracement, and you can opt for a short position, following the primary direction of the descending trend.
Retracements occur when traders book profits, and futures prices move in the opposite direction of the initial breakout. If you missed the initial price movement, you need to wait for the price to return to support and resistance levels to open a trade at a more favorable price."
