I call this my 'Spring' line trading technique. On this 4-hour chart, the Spring support line is at the 16619 area and the Spring resistance is at the 16696 area. This means that if the price closed below or above these lines, i.e., red candle formed below the spring support or green candle formed above the spring resistance, the probability of the price to start or to continue a trend is very likely. Unlike the traditional support and resistance lines, the Spring lines acts as catapaults to further push price towards its direction, so much like a ball that bounces onto a spring! The spring lines are formed by measuring and connecting the lower lows or higher highs based on the RSI values. Thus, this method can be used to measure, quantify and identify the support and resistance areas objectively. I would say that these spring lines are more accurate than the traditional way of determing support and resistance areas. This method approximates the true values of support and resistance areas.
The question now is once the price breaks out the spring lines, how strong and far would the price be catapulted? My spring trading technique can actually estimate the next lower lows and higher highs, and the average closing price. I am not claiming that this technique can accurately predict the next values of the candles, but it can only provide information and scenarios about the future trend, reversals, and an estimate of future prices.
I will be happy to share this method to everyone and I will be posting every now and then how this technique can be applied in trading crypto. If you are interested, please follow me here. I would welcome and appreciate your comments, criticisms, suggestions, inputs and whatever ideas you have in your mind about this method. I am not really sure if this has been discovered or used before but for me, it works!
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Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.