But in each case, let the longer range chart determine the trend, and then use the shorter term chart for timing. Find the Low and High of It Find support and resistance levels. The best place to buy a market is near support levels. That support is usually a previous reaction low. The best place to sell a market is near resistance levels.
Resistance is usually a previous peak.
After a resistance peak has been broken, it will usually provide support on subsequent pullbacks. Know How Far to Backtrack Measure percentage retracements. Market corrections up or down usually retrace a significant portion of the previous trend. You can measure the corrections in an existing trend in simple percentages. A fifty percent retracement of a prior trend is most common.