The use of Resistance Support and Trend Lines on USDAUD pair
This following chart is to explain the use of the support and resistance lines. Which most of the times gives us enough information to place an order, or just to have even more information to place one.
At this chart we proceed to place the first 2 lines, the highest resistance line, and the lowest support line. Both touches at least 2 o more points in the price. For the support line, we place it where the price in a upper trend went through. And the resistance line we place it where the highest price is.
The other lines are placed mainly because of the touch of various points making them touch or surpass the lines changing them into support lines > Resistance lines or resistance lines > support lines depending if the price goes up or down the lines.
Afterwards we draw a trend line where the maximum price were and place it pretty far to get a resistance line in the trend.
Then every time that the prices touches the support line and going up to hit the resistance (trend) line we can expect a break from the resistance line where we can place an order. Going for a long position as you can see. Because we were able to place the resistance line before. We can expect where the price can go. Following the resistance line it does a down fall of the price and trace again the same trend line we placed before and proceed to see our lines and see that the resistance line that converts into the support line behaves like the one before.
Waiting for the price to touch the support line we can expect and place an order. Going for a short position expcting the profits to get to the support line next to the lowest support line.
That area which give us the information thanks to the resistance and support lines. Could place other position because it went down further from we placed the support line previously. making a short position.
At this chart we proceed to place the first 2 lines, the highest resistance line, and the lowest support line. Both touches at least 2 o more points in the price. For the support line, we place it where the price in a upper trend went through. And the resistance line we place it where the highest price is.
The other lines are placed mainly because of the touch of various points making them touch or surpass the lines changing them into support lines > Resistance lines or resistance lines > support lines depending if the price goes up or down the lines.
Afterwards we draw a trend line where the maximum price were and place it pretty far to get a resistance line in the trend.
Then every time that the prices touches the support line and going up to hit the resistance (trend) line we can expect a break from the resistance line where we can place an order. Going for a long position as you can see. Because we were able to place the resistance line before. We can expect where the price can go. Following the resistance line it does a down fall of the price and trace again the same trend line we placed before and proceed to see our lines and see that the resistance line that converts into the support line behaves like the one before.
Waiting for the price to touch the support line we can expect and place an order. Going for a short position expcting the profits to get to the support line next to the lowest support line.
That area which give us the information thanks to the resistance and support lines. Could place other position because it went down further from we placed the support line previously. making a short position.