In the world of trading, understanding how prices behave at support and resistance can make all the difference. Today, we're going to talk about pullback and how to turn market reversals into profit opportunities! 💡
What is Pullback?
A pullback occurs when the price “hits” an important zone, such as resistance or support, and reverses its movement. It is a temporary pause before continuing the trend or changing direction completely. Knowing how to identify these moments is key to trading safely! 🔑
How Does It Work in Practice?
1️⃣ Price rises and encounters resistance: If the price reaches R$110.00 (resistance) and fails to break through, it may fall. This is the time to sell.
2️⃣ Price drops and finds support: If the price reaches R$90.00 (support) and shows strength, it may be time to buy.
✨ Think of price as a ball: without force, it bounces back!
Strategies for Operating Refractions
🔥 Step 1: Identify support and resistance zones with charts (use 1h or 4h time frames).
🔥 Step 2: Confirm with indicators:
RSI: If above 70, the price is overbought; below 30, oversold.
Bollinger Bands: If the price is on the edges, prepare for reversals.
🔥 Step 3: Watch for candlestick patterns like hammers and shooting stars. They signal reversals!
💡 Practical example:
Price hits strong resistance and volume decreases? Sell as it may reverse.
Price drops to support and starts to rise with volume? Buy as it could start a new rally!
Advanced Tips to Maximize Profits
✔️ Always use stop-loss to limit losses and protect your capital.
✔️ Work with fractional orders, dividing your capital into parts to enter at different times.
✔️ Combine technical analysis with market news to avoid surprises.
If you liked this strategy, comment, share and start applying it to your trades! Let's turn knowledge into results together! 💰✨
#marketpullback #BinanceSquare #TradingInteligente #DicasDeTrader #ProfitFromRefraction #SupportAndResistance
