Key Levels – Horizontal Support and Resistance
Horizontal support or resistance is often encountered at significant price levels.
Autochartist’s Key Levels identifies these levels and notifies traders when the price approaches or breaks through these important levels.
With Key Levels Autochartist automatically identifies these price levels as either “Breakout” or “Approach”.
Breakout Key Level
Approaching Key Level
Breakout Key Level vs. Approaching Key Level
Breakout: When a Key Level is Breached
- Breakout signals indicate that a significant key support or resistance level has been breached.
- A forecast region is provided by Autochartist.
- Traders will buy when price breaks above a level of resistance and sell when it breaks below a level of support.
Approach: When Price is moving towards a known Key Level
- Approach signals are early warning signals traders that price is moving towards an identified key level of support or resistance
- As price approaches the key level, the expectation is that it will either “bounce” off or break through.
- Approach signals are helpful to determine where to place stop losses and take profits.