Power levels

Power levels are needed to predict the movement of the trend, they also give signals to buy or sell.

The main ones are 3 power levels:

• Psychological
  
  
• Historical




• The key, (or even call it local),




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In addition, the power levels are sometimes serve as a support or resistance line. Based on the concept of force levels, choose two main methods of trading:

Trading ranges, provides trade from one to another level. It is important to pre-set threshold level of penetration power. When the level of broken down or up, the best thing in this case, wait until the price returns to the line of the breakdown, with the following order to the nearest lower or upper level of force. But if the level of stand, it is necessary to look for signals to increase or decrease the price of the course.
The essence of this strategy is that, despite the constant movement of prices in the market, you can still select the range in which the price is delayed for a long time.

In addition, these levels (or taken back to say, ranges) have a discrete structure. When a deviation from the transmitted power level, the price always goes to the other, lying near the power level. Generally, the prices stay at a great distance from the power level does not last long. This is a good advantage for those traders who use this method of trading.

The second method - a trend trading, which includes trade in the direction of the trend, or trend. If the trend in the market increases, then the best solution in this situation, transactions will be buying and vice versa.
And remember that a good trading strategy is to buy (even at a high price) and sell a lot more expensive. Trade with the trend, in principle, considered to be the best solution, which is shared by many experienced traders.