The so-called key point is the position where the trend of London silver price is likely to turn after testing. For example, the silver price rises to certain key points and then reverses and falls, or falls to certain key points and then reverses and rises. After we understand the importance of key points to trading, we must start to understand how to find these key points. Let's discuss 2 methods below.
Look at it from a more macro perspective. Generally, key points will appear at major turning points. To find the main turning points, we need to use a more macro perspective, shrink the trend chart or move it to a higher time period (such as daily line, weekly line). In the macro view, From this perspective, we can more easily find the main market turning points - this is where the key points are. If we use a time period such as 30 minutes or 5 minutes, even if we find a major turning point, the criticality of the point will be weakened due to the lower period.
Pay attention to areas with many shadow lines. The shadow line is a component of a K line. In addition to showing the high or low price in the K line, it also has an important role, which is to show the rejection of the rise or fall. For example, at a level, the London Silver price tested it many times and left a long upper shadow. This is evidence that the bulls failed to break through this level, indicating that there is strong pressure here, so those with more shadows Places may also be key locations.
Shrinking the trend or moving it to a higher time period, observing the main turning points of the market, and looking for horizontal positions with more shadow lines. These are all methods for us to find key points in London silver trading. We hope that the above content will be helpful for investment. The reader will be inspired.