I mentioned in my last post about how you can trade the DOW when President Trump hits social media with his doom reports.
In this post I want to elaborate on that by sharing a video that explains on the importance of trading using Support and Resistance levels and how you can trade many other charts by drawing S&R levels that form triangles.
Using support and resistance levels should really form the foundation of all your trading.
These critical price levels can give you a clearer indication of where the price is likely to go.
Often when you are drawing your support and resistance lines, you will notice that channels and ranges become highlighted as well as triangles.
I love trading along triangles in either upward or downward trends.
The DOW Triangle
If you look at the chart of the DOW, you can see that I have drawn in a horizontal resistance line at the top and a diagonal support line at the bottom.
This has formed a triangle.
As I pointed out in my last post, the idea is then to trade at these support and resistance levels.
You will look for reversal candle patterns at these levels.
You will go long when price has reached the support level and a reversal candle pattern has formed.
And you will look to go short when resistance has been met and reversal candle patterns are formed.
Trading Should be Easy
Whilst this may sound too simple to be profitable, trading like this is in fact a very easy and profitable way to trade.
What’s more is that you can find triangles appearing on many charts.
If you build up your personal portfolio of charts that you like to trade that have formed triangles, over time you will find you have a very profitable and solid list of Indices, Currencies and Stocks to trade triangles.
Trading Triangles is a great strategy.
Trading Triangles Video
I want to share a video with you today on how you can use triangles and support and resistance levels in your trading.
This is a great video to give you a clear understanding of how simple it is read a chart, draw support and resistance lines and create trading triangles.