Support Resistance Propulsion Targets

Understanding Support and Resistance

• Support is the price level at which buying interest is strong enough to overcome selling pressure, causing the price to rebound. 💪
• Resistance, on the other hand, is where selling interest is enough to halt or reverse an upward price movement.
• Traders utilize these levels to identify entry and exit points, enhancing their trading strategies.

Propulsion Candle Gaps

• Propulsion candle gaps are significant price moves caused by large institutional trades, often indicating strong momentum.
• These gaps serve two primary functions:
• As directional signals: They suggest which way price is likely to continue moving.
• As price targets: They typically result in price retracement back to these levels, allowing traders to set realistic targets. 🎯

Utilizing Indicators for Support and Resistance

• Various indicators automate the identification of support and resistance levels, including:
• Automatic Support & Resistance Lines: These indicators draw levels based on price action from different timeframes.
• Statistical Support Resistance: This indicator uses statistical analysis to set dynamic support and resistance levels that adapt to market conditions.

Confirmation of Levels

• Support and resistance levels are confirmed when price actions test and react to these levels multiple times.
• Higher timeframes yield stronger support and resistance levels, increasing their reliability.
• Historical price data is critical; traders must analyze past behavior around these levels for informed decision-making. 📈

Practical Strategies

• Many traders combine support and resistance with other strategies, such as:
• Trend following: Ensuring trades align with the overall market direction.
• Risk management: Utilizing these levels to set stop-loss orders and take profits efficiently.