Introduction: Supports and Resistances

In this section we are going to introduce you on technical analysis, as we said in another section is necessary to determine when to enter into a transaction for which we have to look at certain references. These references are known as "Support and Resistance", the operator is always looking for these references to check a particular point or level, as now called, has been broken or not.

When we see a level that has been broken we can determine that it is a good time to buy or sell, if it has not been broken, indicates that support or resistance is strong.

But we have commented that we must always follow the trend, the question is, how we determined the trend?. But the trend is determined using trend lines no matter what is a trend.

Using the trend lines we will be able to trace where the channel will move prices, we are useful to identify points of entry and points of sale, using the trend lines of minimum and maximum.

The trend lines of the channel as well as allow us to work at different periods, as we want to operate in the short, medium or long term. Taking into account time scale on which we work.

The channels will allow us to determine what kind of trend we are bullish, or bearish side. So that we can also follow the trend as one of our principles is not to operate against trend.

No matter where we are always find trend Stands and reference resistors, which are basic to operate. But the points of sale or purchase can be changed depending on the trend that is one.

Using these channels, we will be possible to determine if a trend has changed or is likely to change. It is essential therefore to draw trend lines as far as possible in order to determine whether there has been a change in trend or not. It is possible that this principle will be difficult to understand but this practice will be very useful.

Therefore in this section we will focus on three technical concepts that will be crucial to conduct a technical analysis. Advancing a little we can say that there are ways to operate based solely on the supports and resistances that we will see in a more advanced lesson.