Heiken Ashi Support & Resistance trading: Profits on the level! (Heiken Ashi Price Action Book 2) by Heiken Ashi Day Trader

Author:Heiken Ashi Day Trader [Day Trader, Heiken Ashi]
Language: eng
Format: azw3
Published: 2016-12-27T16:00:00+00:00

Support and Resistance levels

Understanding levels of support and resistance may be the single most important aspect of your technical analysis as a forex trader and should always be factored in before making any trading decision. There are two different steps to using support and resistance levels that you must understand before you can successfully use them in your trade plan with Heiken Ashi. The first step is to identify where to place these horizontal lines and the second step is to foresee how these levels may affect your trades and to take that analysis into consideration before placing a trade.

So what are support and resistance levels? Simply put, a level of resistance is where price resists moving higher due to the selling activity of other traders and a level of support is where price resists moving lower due to buying activity of other traders. Identifying levels of S/R is not an exact science, but it is fairly simple and, for most people, it only takes a little time to start to feel comfortable with deciding where to place these lines on their charts.

Many traders out there prefer long term levels of s/r from weekly timeframes , but I find that day trading short term levels and using whole numbered psychological levels offer the best s/r areas.

Now that we know what support and resistance levels are let's look at what Heiken Ashi Candlesticks are and why we prefer trading with them as opposed to trading with traditional Japanese candlesticks.

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