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Basic of Support and Resistance
Support and resistance are proven areas where buyers and sellers find some of equilibrium, they are major turning points in the market.Support and resistance levels emerge when the price reverses its direction. These key levels often act as barriers, containing price movements within their range. However, when a breakout occurs, the price can move beyond these levels, leading to potential new trends. In trending markets, support and resistance levels are established at swing points. During an uptrend, the previous swing point serves as a support level, while in a downtrend, the previous swing point functions as a resistance level. The illustration above demonstrates how the previous swing point becomes a…
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Bullish Kicker
The bullish kicker candlestick pattern is a powerful reversal pattern that signals a strong shift in market sentiment from bearish to bullish. It typically occurs at the end of a downtrend or during a period of consolidation and is highly regarded for its reliability. Key Characteristics of a Bullish Kicker: Two Candlesticks Formation: Gap Between Candles: Volume: Psychological Implication: Interpretation: Trend Reversal: It signals the beginning of a potential uptrend, especially when confirmed with subsequent bullish price action. Strength of Buyers: The sharp change in sentiment suggests strong conviction among buyers, making it a reliable pattern for traders. How to Trade the Bullish Kicker Pattern: 1. Identify the Bullish Kicker…