Simple methods - support / resistance

[Shantanu]

Another example of simple methods of trading is looking for breaks of
support, resistance levels. The break of such levels in the direction
of the trend in a higher time frame can be very good profit generating
trades.

Some times such breaks even in opposite directions of the next higher
trend can be very productive.

The main things to remember are:

1. Let these moves before the break be of wide enough degree to
ensure that one is not playing with noise but with real moves where
enough trader's participation has happened.

2. That such breaks need time to happen. It is like a start a long
jumper takes to gain the momentum to make it. So will a break happen
after enough work is done in terms of consolidation etc.

So patiently wait for such breaks, they take longer time than one
wishes. So keeping the powder dry till it happens is required.