By using the Principles of Dynamic Resistance and Dynamic Support, We initiate Positions at less crowded Price Points.
The first yellow circle on the top of the chart, is the first entry given by the principles of dynamic support. A dynamic support rises as the price line rises. A static support remains at the same level, at the same price point, and is illustrated by a horizontal line in most books and trading courses. We rarely see the mention of dynamic support. Using a dynamic support gives you a different viewpoint and determines an entry point where most other traders are not considering an entry. When the price line reaches the static support level further below, you already have a position and are already in profit. At the static support level, you can add to your position. This way, risk is spread out at different price points. Also, because most traders initiate a short trade at the static support level, this often results in very choppy conditions at that level. To initiate the trade there at the static support level often results in experiencing unnerving conditions.
Basically your dynamic support is your trend line and from top or bottom you are drawing horizental line which you are calling static. Why to make it so difficult. Just call trend line and horizental support and resistance.
KeownArcher
⋅
@ajawwad, i agree , plus taking a sell on the touch of an ascending trend line wouldn’t be clever or advised . A break and retest first.
angelascanio
⋅
Thank you. I come from a country where oil is the most important product and we are not taught in this basic principles of economy.