If there is only one concept to know when investing in the market. It is the one of support and resistance. Simply put, support and resistance are price levels that stocks or other financial instruments have trouble moving beyond. Support acts as a sort of price floor, while resistance acts as a price ceiling. TRADOTO offers a fully automated trading mode to leverage all price pattern related to this popular indicator.
Supports and Resistances can be easily identified and are the points where the price is changing direction. These are psychological levels, the market should always be seen as the sum of the psychology of humans traders and the computer systems that have themselves been programmed to mimic human psychology.
Support and resistance can be seen as a psychological barrier. When bumping into it or testing it for the first time, you might retrace back. In investor language this is called a reversal. But by touching it, again and again, the barrier will start to weaken, and suddenly you might be able to cross it and run away. It is called a breakout.
TRADOTO offers you to automatize these strategies and to remove emotions from your trading to achieve stellar results. Our strategy is fully programmable to let you stay in control of your trading.
Breakout strategies are some of the most used and most profitable strategies, especially if they follow the direction of the global trend and are fueled by strong volume. Famous investors William O’ Neil wrote numerous books about this strategy that we encourage you to read. As a breakout trader, enter a long position, when resistance is broken and enter a short position, when the support is broken.
Automate TESTS AND REVERSALS:
The support and resistance levels can be regarded as a bumper. Often, the price will touch a resistance, reverse their course and decline to test the support level, bump into it and go back up again. This trading range behavior is an easy way to get some quick profits up the real breakout. Support and resistance levels are tested all of the time. This is another strategy that can be used and automatized with TRADOTO.
Not all breakouts are created equal, false breakouts (aka fakouts) can be frequent depending on the instrument/stock and time of day. Trading this type of price pattern can be very lucrative with the right risk management strategy, TRADOTO lets you apply the appropriate algorithm to fully capture those moves effortlessly and most importantly, emotion-free.
Having the possibility to automatize your support and resistance strategy is one the easiest way to benefit from the market in a reliable, consistent, and safe way.