Monday, December 21, 2009

Support & Resistance Point

One of the many technique that doesn't require any technical indicators to predict the market movement is simply the support and resistant point. The idea of this is to let the market decide where the point of fluctuation is and then they follow it.

This method is no doubt one of the most famous one use by the price action traders who depended on the market to make the move and they follow up. Some novice traders who are over reliance to certain indicators are unaware that the market is actually move in this way. Overwhelm by their own confidence and overlook the market movement by their indicators behavior most often cost them dearly mistakes.

If you study the market carefully even though at certain point it follows the indicators, one need to make a deep observation where is the fluctuation point. You can study this on daily chart and see. That's why professional traders would prefer to look at the price action first before using any indicators, and determine the fluctuation point.

Next time when you trade try to look into the fluctuation point before taking on your indicators you will see the different in trading compare to merely using indicators alone.

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