How to draw horizontal lines efficiently and accurately, as I use it.
Hi, I’m K3.
This time I would like to write about how to draw horizontal lines, which I have received many requests for in DM.
I’ve never written an article like this before, so my writing is not very good.
I have never written such an article before, so it may be poorly written, but I would be happy if you could read it to the end.
I would appreciate it if you could give me some money.
So let’s get to the point.
The longer the time frame, the stronger the resistance zone will be.
The longer the time frame, the stronger the resistance zone. I tend to trade between scans and day trades, so I draw between 4-hour and daily time frames. For longer time frames such as swing, weekly is fine.
In addition to this, I also take into account the volume by price range.
It’s the yellow and blue bars on the right. It’s called the volume zone.
The red line is the point where the volume was the highest.
For those of you who are wondering what volume by price range is, here is an additional explanation.
Volume by price range is the number of shares traded in each price range over a certain period of time. It is generally displayed as a bar graph on the right side of a stock chart. If the bar graph is high, it means that there were many investors who traded there in the past.
If you Google it, you will find this.
In short, you can think of it as a visualization of the point of attack and defense in a fistfight between participants.
A price range with high volume is a price where a large amount of money has flowed in and a large number of participants have traded.
And since the price range is often the point where a large number of participants are holding positions, it is recognized and becomes a strong resistance support.
It is common to take a position against that point.
And one more thing.
If you have a good intuition, you already know what will happen if the support in that strong price range collapses.
Naturally, the price will run with a large number of loss-cutters involved.
I am also watching the borderline where there is a large difference between the high volume and low volume areas.
Boundary line with large difference in volume
If the volume zone is ambiguous, I look at the high and low prices, subtracted from the entity base. This is maintained in a timely manner.
Please think about how to use it in other ways.
Just being aware of the positions of the other participants will change your view a lot.
That’s it for the first installment. If there are any requests, I would like to write more articles. Thank you for reading this far.
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