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Monday, July 28, 2008

Support /Resistance buy and Sell Zones Chart 2

The first thing to remember in all trading.....price will not go up forever and price will not go down forever..... price will return and test previous zones of highs or lows at least once but many times price will return to previous price zones as many as two or three times ..... In this chart the price action at the top is showing signs of exhaustion for this leg of increase .....so we can expect price to move back to the previous price zone at least one time ......so this could be a low risk high profit entry for a limited time short sell....or wait until price retraces back to the target zone for a buy entry........on this chart, since the trend is up...I wouldn't expect price to travel below target zone . But once in the target zone expect a move back up toward the highest price point but not beyond the current High. Will cover more in next post...........Neboxian

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