|
Generally, a profitable entry point is one with ultimate support or resistance, which investors will use to buy or sell and gain certain monetary
benefit. Therefore, to find support and resistance becomes a vital issue in market trading. Based on J-Chart's philosophy, the calculated Balance
Points are meaningful support and resistance levels (short-, mid- and long-term) which can be easily identified with the flexible ways of data
combination provided by the program.
Using support and resistance is one way to determine entry and exit points. It refers to the principle
"Market participation, when the market is undergoing the process of obtaining equilibrium". In this situation we enter and trade
"against the market" within the boundaries of the actual equilibrium. Furthermore, using Balance Points as support and resistance is also one way
of pursuing your risk management control.
According to your trading habit (cycle), you might want to look for different levels of support and resistance. The following 3 examples show
the identification of short, mid and long-term levels using different settings for historical trading days and data combination.
|
