Support and resistance (SR) are two of the most potent tools to use for trading or investing. In fact, using these alone with no other part of the method can be a very effective approach to markets. It was the first thing which my mentor Danny told me to focus on. There is probably not an easier method to learn in markets, and it’s a good part of the reason why it is so effective. Meaning – it’s “simplicity”. It’s actually more effective for trading than for investing, because of the relative immediacy of the change in direction of the market when those levels are encountered. There are ways to make it more effective to use SR. And there are also ways to judge the more important areas, along with using gaps. Those topics will be dealt with on an ongoing basis.
Accumulation / Distribution