Drawing better resistance lines

Discussion in 'Risk Management' started by fantastic4, Dec 25, 2008.

  1. This video just really made a big impact on me. You ever experience that? Something small you see, and then you say, wow that just made me a better trader. I don't know if it'll be that important to you but drawing better trend/support/resistance lines is one area I still need a lot of improvement.

    This is an old trade on BIDU and the trader mentions why he drew his resistance line where he did, and not where I personally would have drawn it. Funny thing is , I looked back on an historic chart and a few week later price smacked its head on his line, and didn't get any where near where mine would have been.

    Man, have I pumped this up yet enough?

  2. Interesting...
  3. gaps are zones not specific lines. the upper line of this zone was valid as a resistance too. Just because once price did not hit the upper line and only the lower line doesnt mean the upper line isnt a valid resistance.
  4. Tcbjx9


    What do you mean by 'zone?