Hi all,
Do support, resistance and trend lines have to have 3 price touch points to be considered valid?
Many thanks
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I haven’t been through the course myself but I follow alessio rastani who is pretty good at trading. He says that the more touches a support or a resistance level has the more likely it is going to be broken. This kinda makes sense. Let’s say you decide to buy bitcoin at 6k and then the prices bounces but then comes back and you buy again at 6k. Then it bounces back up again but comes back down to 6k and you might buy again for the third time. But if it happens the fourth time it is very unlikely you will buy again.
If you asked some traders this question I am sure they would tell you that you are asking a wrong question. I used to ask questions like this. There is no certainty in trading. Yes we can say that 3 price touches is a trend but nothing will make you sure it will hold the 4. time. Trading requires patience and a proper risk management. Its about the probability of what is more likely to happen. Make sure you evaluate which moves will be more profitable aswell. And don’t forget about stop losses. They are your best friend.
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