The Q Profit System review is important to check before you start trading in the market using the automated trading software. These algorithms are formed using candle stick patterns which studies the history of the asset and then determines the entry, exit and the stop loss price of the asset.
A very important part of the algorithm and technical analysis is the support and resistance levels. These help to identify the purchase and the target price of the asset that you want to trade in. These are the price points on the technical analysis chart and this is where there is maximum buying or selling on the asset. The support is the price where the buying power of the asset is the maximum. The resistance is the level where the sellers are the maximum.
Resistance is a very important price point on the technical chart. This is where the sellers are more than the buyers and where the price of the asset is likely to fall. This is where the supply is the maximum and it is always important that the resistance price is above the current price of the market.
At the resistance point it is very likely that the price will consolidate and absorb the supply and then decline in price. Resistance is considered to be a major technical analysis tool and this is what the traders look for when the market is rising. This is where the traders get a trigger to sell the asset.
When there is resistance then it means that the supply is excessive and this builds the pressure to sell. When there is pressure to sell then it will drag the price of the asset lower. This is why when a trader has brought an asset in the market he looks at the resistance levels to check where he should exit the trade.
In case you want to short sell in the market then the resistance is the point where you decide to place a sell order in the market.
The binary trading software identifies the resistance for you and then places the exit on the trade at that price point. It is important to know that there may be many resistance levels in the chart and the algorithm identifies the level that is the strongest.
Identifying the resistance levels takes a lot of expertise and thus the creators of the software have designed the software in such a manner that it finds out the resistance level with the highest probability.