How to use the Rebound line Strategy

Line rebounding is a graphical pattern that attempts to capture a price that is unable to break through support or resistance levels.

rebound line
rebound line

Many traders feel the price upward dynamic has ended when the price reaches the level of resistance and the first candlestick closes below this level. And then you enter a trade for a sell.

When the price meets resistance
When the price meets resistance

The Rebound line strategy

The rebound line approach can be used in a neutral trend as well as an upward or downward trend. When the price reaches the support line and the first candlestick closes above it, some market participants believe the downward trend has come to an end, and they trade for a rise.

When the price meets support
When the price meets support

The neutral trend, like the upward and downward trends, is affected by the support line rebound.

rebound
rebound

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