Diagonal Support and Resistance – Trading Systems – 17 January 2022

diagonal support and resistance

In the financial market, we can frequently observe country price patterns. Diagonal support and resistance are typical price patterns that we can observe as results of the combined effect of the equilibrium process and the fractal wave. Diagonal support and resistance are no different from horizontal support and resistance. When connected tops and troughs provide the diagonal slope rather than the horizontal line, then that slope can be considered as the diagonal support and resistance. However, there can be more differences compared to the horizontal case. First, we can get the bullish diagonal support and resistance. Second, we can also get the bearish diagonal support and resistance. For your convenience, we have listed all possible diagonal support and resistance patterns in Table 2-2. We have also included the corresponding example for each pattern from Figure 2-6 to Figure 2-13. How to trade diagonal support and resistance levels are the same as horizontal support and resistance levels. You can apply the Relative Threshold Method and the Fibonacci Limit Method to your entry in the case of Diagonal Support and Resistance as well. An example of trading is shown in Figure 2-14. How to calculate the threshold level for Y Buy and Y Sell similar to the horizontal support and resistance case. As with horizontal support and resistance, it makes sense to set the stop loss level higher than the minimum stop level.

About this article

This article is the portion taken from the draft version of the book: The Scientific Guide to Price Action and Pattern Trading (Trend Wisdom, Cycle, and Fractal Wave). The full version of the book can be found from the link below:

https://algotrading-investment.com/portfolio-item/scientific-guide-to-price-action-and-pattern-trading/

The advanced price pattern scanner is a non-repaint scanner designed for both MetaTrader 4 and MetaTrader 5. It can detect many price patterns important to your trading such as rising wedge, falling wedge, head and shoulder patterns, cup and handle, etc. An introductory video to the Advanced Price Pattern Scanner from YouTube. Please check the YouTube video “Introduction to the Advanced Price Patterns Scanner” YouTube video. This video covers some basic operations using the Advanced Price Pattern Scanner in MetaTrader.

YouTube Advanced Price Pattern Scanner: https://www.youtube.com/watch?v=A1-IUr6u5Tg

Below are the links for the Advanced Price Pattern Scanner for Metatrader 4 and MetaTrader 5.

https://algotrading-investment.com/portfolio-item/advanced-price-pattern-scanner/

https://www.mql5.com/en/market/product/24679

https://www.mql5.com/en/market/product/24678

Price Breakout Pattern Scanner is the popular breakout pattern scanner at an affordable price with many powerful features. It can detect triangle, falling wedge, rising wedge pattern, head and shoulder pattern, double top and double bottom. As an added bonus, you get access to 52 Japanese Candlestick Patterns + Smart Renko. However, this scanner can be redrawn. It does not support multiple time frame pattern scanning. Below are the links to the Price Breakout Pattern Scanner for MetaTrader 4 and MetaTrader 5.

https://www.mql5.com/en/market/product/4859

https://www.mql5.com/en/market/product/4858

https://algotrading-investment.com/portfolio-item/price-breakout-pattern-scanner/

The main difference is that the Price Breakout Pattern Scanner is a redraw pattern scanner while the advanced price pattern scanner is a pattern scanner that does not repaint.

Leave a Comment