Another example of simple methods of trading is looking for breaks of support, resistance levels. The break of such levels in the direction of the trend in a higher time frame can be very good profit generating trades.
Some times such breaks even in opposite directions of the next higher trend can be very productive.
The main things to remember are:
1. Let these moves before the break be of wide enough degree to ensure that one is not playing with noise but with real moves where enough trader's participation has happened.
2. That such breaks need time to happen. It is like a start a long jumper takes to gain the momentum to make it. So will a break happen after enough work is done in terms of consolidation etc.
So patiently wait for such breaks, they take longer time than one wishes. So keeping the powder dry till it happens is required.
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