Which is more significant, Horizontal lines or Trend Lines?
<div><div>Morning everyone,</div><div>I thought of putting up an educational post here today. The question here is</div><div>"Is a Horizontal support or a Trend Line support more significant"</div><div>But first, let's start by stating a fact. A horizontal support cannot be defined with only a single line. Price will more often crack through the line, finds support and then bounces up. In another word, price does not get supported at a single level but instead at a zone. Price will even temporary crack below zones and then bounce up.</div><img src="http://static.wixstatic.com/media/11e264_561d3e8e68f84e668f380f0ce14ce57e~mv2.jpg" /><div>The most significant characteristics about Horizontal levels is that the price level does not change with time. </div><div>"For example : If the strong Horizontal resistance level is identified at say the 1.1050 level, once you mark this out, it stay the same. As price approaches the level again in either 1 weeks time, 1 month time or even 1 years time, the resistance level will still be at 1.1050"</div><div>Now let's move on to have a look at Trend Lines support and resistance. Have a look at the chart below. Price could possibly take 3 different paths towards the Resistance Trend Line</div><img src="http://static.wixstatic.com/media/11e264_211182218bb84cb0a4d5ab46bd17ab22~mv2.jpg" /><div>For Trend Lines, the price levels changes with time. </div><div>"For example, if price immediately moves up, the Resistance level will be at 87.50. For the 2nd and 3rd scenario is the price takes a longer time to move up, then the resistance level could be at 87.40 or even 87.30" </div><div>Conclusion :</div><div>Because of the fact that Horizontal levels does not change with time, traders naturally remember the levels and that makes it a more significant level as compared to a dynamic trend line support or resistance.</div><div>One last note here: As traders, we should assume that the resistance or support levels will hold until it is proven otherwise. Don't try to over predict the future moves.</div><div>"Your learning journey should never stop". I believe in continuous learning, in any discipline that you are involved in, trading included. </div></div>
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