Find out how important it is to maintain adequate levels of magnesium in the body. Investments: Terminological Dictionary - Rosenberg J.M.

Strength training is a complex of sports exercises, the purpose of which is to strengthen the musculoskeletal system.

How is cardio different from strength training?

Unlike cardio training (or aerobic exercise), which is mainly aimed at strengthening the cardiovascular system, strength (or anaerobic) training increases muscle mass. The fact is that any movement that you perform, whether you are walking, climbing stairs, driving a car, or just standing, involves certain muscle groups. Muscles have the ability to contract and relax, while they produce energy. Muscles are metabolically active structures, meaning the more muscle mass you have, the higher your metabolic rate (the amount of energy you need) at rest and when you move.

What are the benefits of strength training and how will it affect you?

With regular and properly selected strength training:

Increases the size and strength of muscle fibers;

The skeletal system, ligaments and tendons are strengthened;

Reduces the risk of diseases of the joints and muscles;

The level of metabolism increases.

All this has a positive effect on overall physical fitness, appearance and activity level.

Why is strength training so important?

It has been proven that over time without sufficient and regular strength training, muscle strength and size decrease. If a person does not maintain a sufficient level of activity, then after 20–25 years, on average, he loses 200–250 g of muscle mass in one year, and after 50–60 years, losses double. Along with a reduction in muscle mass, bone density also decreases, metabolism decreases, which can adversely affect a person’s health.

By developing the habit of doing strength exercises, you can maintain an optimal level of muscle mass throughout your life. This healthy habit will not only help you stay in an attractive physical shape, but also reduce the risk of accumulating fat mass, with an excess of which ailments such as atherosclerosis, metabolic syndrome, diabetes, etc. are correlated.

It is worth paying attention to the fact that excessive enthusiasm for strength exercises can bring not only benefits, but also harm, especially if the training program is drawn up without taking into account the individual characteristics of the trainee. Strength exercises involve work using both your own body weight and additional weight (dumbbells, barbells, kettlebells, etc.), so this type of exercise puts additional stress on bones, joints, ligaments, and large vessels.

Before going to the gym, you should consult a specialist, especially if you have diseases of the musculoskeletal system, have previously had any injuries, have diseases of the cardiovascular system, or have ever sought help from a neurologist or psychiatrist. Newcomers should also undergo a minimum medical examination.

To draw up an individual training schedule, you should involve a competent trainer who can assess your level of physical fitness and teach you how to perform the exercises correctly. When working with weight, it is very important that someone be sure to insure you.

What types of power loads can be used?

Gymnastics, in which the weight of your own body is used to train muscles. This type of strength training is great for beginners, as it perfectly trains the main muscle groups and is quite enough to maintain optimal muscle strength. Examples of such exercises can be: various push-ups and pull-ups on the bar, squats and lunges, pumping the press, etc. This type of activity is ineffective for deep muscle training, but ordinary gymnastics will be quite enough to maintain overall tone and a flat stomach.


Work with a fixed weight.
This training technique allows you to strengthen all major muscle groups and involves the use of a fixed low weight throughout the entire cycle of the exercise. For example, if you are doing an exercise with 2-3 kg dumbbells to work out the triceps (flexion of the arm at the elbow joint), then the weight of 2-3 kg remains constant throughout the duration of the training cycle. To perform the exercises, a small weight load is used. It can be dumbbells, expanders and some types of simulators.

Variable load allows you to work out the muscles deeply and contributes to a faster increase in muscle mass. With this training method, the load changes directly during the exercise. Some types of machines use different angles and gravity to create different forces when lifting and lowering the weight.

What are the basic principles of successful strength training?

For effective muscle training, the load must be increased methodically, forcing the muscles to work harder and harder. The main task is to prevent the muscles from adapting to a constant weight.

Variable load allows you to work out the muscles deeply and contributes to a faster increase in muscle mass. With this training method, the load changes directly during the exercise. Some types of machines use different angles and gravity to create different forces when lifting and lowering the weight.

With strength training, attention should be paid to all major muscle groups. This is necessary for a uniform increase and development of the muscular frame.

Periodicity.
For most people, there is no need to do strength training every day. The optimal frequency is 2-3 times a week. Another option is to work on different muscle groups on different days. It is desirable that strength training alternate with cardio loads. However, it should be remembered that by arranging too long breaks between workouts, you risk not only slowing down the rate of muscle gain, but also losing the achieved result: the muscles will begin to weaken after 7-10 days.

How to choose the right weight?

Determining the initial weight level is a rather complicated issue. If you have just begun to change your life with the help of strength training, then be prepared for the fact that it will take some time to select the initial weight and intensity of work. The general principle is to focus on the feeling of fatigue. At the same time, performing the last repetition, you should feel that the muscles are tired and loaded to such an extent that another repetition can no longer be done.

The number of repetitions directly depends on what weight or load you are working with. For example, if you are doing an exercise to strengthen the triceps, then, while unbending your arms raised above your head, in the elbow joint with dumbbells weighing 2-3 kg 10-15 times, you should not stop at exactly 10-15 repetitions, you need to continue the exercise until you will feel complete muscle fatigue and will not be able to do another repetition. The next time you perform this exercise, simply increase the weight of the dumbbells to such an extent until you feel the maximum fatigue already at the 8-10th repetition.

How many reps do you need to do?

There are two approaches that depend on what you want to achieve: develop strength or increase endurance and tone. If you are aiming to develop strength, then you should do fewer reps (8-10) with more weight. If you need to increase endurance and tone, then it will be better to perform more repetitions, but with less weight.

What is the optimal number of approaches?


* Activates specific and non-specific immunity

Progesterone provides support for the second phase of the menstrual cycle. With its deficiency, various menstrual irregularities occur, and, as a result, ovulatory and anovulatory uterine bleeding. That is why, without the normal production of progesterone, pregnancy is almost impossible.

If pregnancy does occur, then a low progesterone content can have irreversible consequences: from miscarriages to underdevelopment of the embryo. You can get pregnant with low progesterone with the help of medications that contain this hormone and increase it in the blood. A completely different question is whether a woman can bear and give birth to a healthy child?

What to do if there is not enough progesterone in a woman's blood?

When the function of the corpus luteum is impaired, natural or synthetic progesterone must be administered every other day or daily for several weeks until conception occurs. Then the drug is administered up to 4 months of pregnancy, in case of miscarriage - up to 36 weeks of pregnancy. The treatment regimen, the specific drug and its dosage are prescribed by the doctor, who relies on the results of the hormone test. In no case should you independently carry out treatment, or arbitrarily change the dosage of prescribed medications!

The level of progesterone in the blood is increased by medication, one drug or their complex. Usually these are capsules applied intravaginally or orally. In the first case - 100-200 mg every 12 hours, in the second - 200-400 mg at intervals of 6-8 hours (three times a day), for 12 weeks inclusive.

Duphaston (dydrogesterone) is prescribed in an amount of 10 mg with an interval of 8 hours, the course of treatment is individual, usually the drug is taken up to 14-20 weeks of gestation. An injectable 1% solution of injest should be administered every day or every other day, 0.5 or 2.5 ml, and a solution of progesterone (oily) - 10-25 mg, until the threat of miscarriage disappears.

How to maintain adequate progesterone levels?

When the progesterone content is lowered, but not so critical as to take medication, the hormone level can be increased by taking herbal tinctures or decoctions, after warning the doctor about such a desire. If the doctor recognizes such treatment as safe and useful, it will be possible to use such methods.

There is also a special preventive diet that increases the level of progesterone in the blood. It involves eating dairy, soy, legumes, and meat products, as well as nuts, cheeses, and eggs.

The main thing is not to worry about the results of the analysis for hormones, but to consult a doctor and strictly follow all his recommendations. Then the probability of conception will increase significantly, and the pregnancy will proceed favorably and end with the birth of a healthy baby.

Magnesium deficiency is something that very, very many people have to deal with. The average human body typically contains approximately 30-60 grams of magnesium in the bones, teeth, heart, brain, and even blood.

Every cell in your body needs this mineral to function properly - magnesium is involved in over 300 metabolic processes!

Eat right and take care of yourself!

I think you already understand how important it is for your health to maintain sufficient levels of magnesium in your body - and yet, even in developed countries, almost half of the population suffers from a lack of magnesium.

The stressful and casual lifestyle of modern man literally sucks all the juice out of us, forcing our body to use the substances stored in it to at least somehow compensate for this.

Simply put, the average person spends more magnesium than they get, and more than they can afford. The recommended daily intake of magnesium for an adult is approximately 500 to 1,000 milligrams per day.

What awaits you if you fail to replenish the rapidly depleting reserves of magnesium in the body?

Magnesium deficiency symptoms include tics, thick blood, leg cramps, migraines, anxiety, depression, cardiovascular disease, blood sugar spikes, chronic fatigue, osteoporosis, and insomnia.

In addition, the lack of magnesium in the body is associated with chronic diseases such as type 2 diabetes and metabolic syndrome - and many others. When your body lacks magnesium, it starts producing more insulin - which in turn allows extra glucose to seep into your cells. And this "inflates" the inflammatory processes in your body.

Magnesium for your body and mind

You should include foods that contain sufficient amounts of magnesium in your diet as soon as possible. Magnesium is high in green leafy vegetables such as spinach and kale, as well as fish, avocados, dark chocolate, whole grain baked goods, legumes, nuts, and various seeds.

You can also supplement your menu with dietary supplements containing magnesium, but keep in mind that they must be of the highest quality. Quality dietary supplements should contain four magnesium compounds - glycinate, malate, taurine and orotate, as these compounds are absorbed by your body much more easily than others.

Want to know what effect they have on your health?

Financial stability is closely related to the formation and use of the capital of the enterprise, the assessment of the adequacy of own capital for effective economic activity.

Financial stability- this is the ability of an enterprise not only to maintain a sufficient level of business activity and business efficiency, but also to increase it, while ensuring solvency, investment attractiveness within the limits of acceptable risk.

The enterprise must maintain the structural balance of assets and liabilities, taking into account the changing factors of the external environment and internal factors. The structure of assets must meet the long-term needs of the development of economic activity, which requires reliable sources of their formation. When attracting borrowed capital, an enterprise must anticipate the financial consequences arising in connection with this: the inevitable increase in financial risks, the cost of maintaining borrowed capital, and the adverse impact of these factors on financial results.

The main condition for ensuring the financial stability of the enterprise is the growth of sales volumes, since revenue is a source of covering current expenses and generating normal profits. Profit growth, in turn, creates conditions for expanding economic activity, investing in improving the material and technical base, mastering new technologies, etc.

To assess the financial stability of the enterprise, absolute and relative indicators are used.

Absolute indicators of financial stability:

  • absolute increase in total assets (liabilities, balance sheet);
  • absolute increase in own funds (own capital) of the enterprise;
  • availability of own working capital;
  • provision of tangible current assets (reserves) with sustainable sources of formation;
  • absolute increase in net revenue;
  • absolute increase in net profit;
  • absolute increase in net cash flow (the difference between the total inflow and total outflow of cash from operating activities).

For the smooth functioning of the enterprise, the formation of the necessary volume and composition of production reserves is of great importance. Therefore, when characterizing the financial stability of an enterprise, a special role belongs to the indicator of the availability of own sources of financing not only for all current assets, but precisely for inventories (working capital).

Using indicators of the availability of material working capital with sustainable sources of financing, four types of financial stability are distinguished.

  • 1. Absolute stability- a state in which inventories are fully covered by their own working capital, i.e. the company is absolutely independent of external creditors. This situation rarely occurs in practice. Moreover, it is not always economically feasible, as it indicates a conservative approach to financing production activities, that the company's management does not use the effect of financial leverage to the proper extent.
  • 2. Normal stability-- a state when inventories are formed both at the expense of own working capital and at the expense of short-term borrowed funds.
  • 3. unstable financial situation, when own working capital and short-term borrowed funds are not enough to form inventories. Enterprises in such a situation use short-term accounts payable to finance part of the inventory. Sometimes this leads to delays in the payment of wages to employees, delays in settlements with suppliers.
  • 4. Critical financial situation arises when, in addition to an unstable state, the enterprise does not repay loans and borrowings on time, cannot fulfill its payment obligations in a timely manner.

Based on the balance of the enterprise (table 10.1), table 10.3 shows the main absolute indicators of financial stability.

Table 10.3 - Absolute indicators of the financial stability of the enterprise for the reporting year

amounts, million rubles

Indicator

For the beginning of the year

At the end of the year

Change per year (+)

1. Capital and reserves

2. Long-term liabilities

3. Non-current assets

4. Own working capital (line 1 + line 2 - line 3)

5. Short-term borrowings

6. Total equity and short-term borrowings (line 4 + line 5)

7. Accounts payable

In the example under consideration, the enterprise has a shortage of its own working capital to finance reserves: at the beginning of the year, 16.3 million rubles, at the end - 12.5 million rubles, i.e. it does not have absolute financial stability. To finance inventories, along with own working capital, short-term borrowed funds are attracted. At the same time, the amount of own working capital, short-term borrowed funds exceeds the amount of reserves both at the beginning and at the end of the year. This indicates normal financial stability.

The total amount of all possible sources of financing of production reserves is significantly higher than the value of reserves: at the beginning of the year + 28.3 million rubles, at the end of the year + 36.6 million rubles.

Relative indicators of financial stability(coefficients widely used in world and domestic practice):

  • autonomy coefficient- the ratio of equity capital to the total balance sheet. Shows to what extent the volume of financial resources used by the enterprise is formed at the expense of its own funds. The normal minimum value of this coefficient is 0.5. The higher this ratio, the higher the financial independence of the enterprise from external sources of financial resources;
  • coefficient of long-term financial independence - the ratio of the amount of equity and long-term liabilities to the total balance sheet. It characterizes the independence of the enterprise from short-term borrowed sources of financing of economic activity;
  • funding ratio- the ratio of equity capital to borrowed capital. The excess of equity over borrowed indicates that the company has a sufficient margin of financial strength;
  • financial leverage ratio- the ratio of borrowed capital to equity capital. Characterizes the financial activity of the enterprise to attract borrowed funds;
  • agility factor- the ratio of the amount of own working capital to the total amount of own funds (own capital). Shows the share of equity that is invested in current assets.

Based on the balance sheet of the enterprise (table 10.1) and the information given in table 10.3, table 10.4 shows the main financial stability ratios at the beginning and end of the reporting year.

Table 10.4 - The main ratios of the financial stability of the enterprise

Indicator

For the beginning of the year

At the end of the year

Rate of change in % or deviation (+")

5. Short-term liabilities, million rubles

6. Total amount of borrowed capital, million rubles (page 4 + page 5)

7. Equity and long-term liabilities, million rubles (page 1 + page 4)

8. Autonomy ratio (page 1: page 3)

9. Long-term financial independence ratio (p. 7: p. 3)

10. Funding ratio (page 1: page 6)

11. Financial leverage ratio (p. 6: p. 1)

12. Agility factor (page 2: page 1)

The data in Table 10.4 indicate a fairly high financial independence of the enterprise: the autonomy coefficient at the end of the year is 0.63, i.e. equity capital is 63% of the total sources of financing of the enterprise. It is positive that this figure has increased over the year.

The increase in the role of own sources of funds is evidenced by the dynamics of the funding ratio: it increased by 0.18 points. Accordingly, the coefficient of financial leverage has decreased.

The coefficient of maneuverability of the company's own capital at the beginning of the year was 0.45. This is a fairly high value, close to the recommended normal value of 0.2-0.5. During the year, the maneuverability coefficient slightly decreased - by 0.01 points. This coefficient depends on the sectoral affiliation of the enterprise, type of activity, structure of assets.

The long-term financial independence ratio has not changed over the year, which should be assessed positively. The value of the coefficient is quite high - 0.81. The organization provided an increase in the amount of equity for the year by 10.9% and a slight decrease in the amount of long-term liabilities.

The assessment of financial stability serves as the basis for developing measures to strengthen the financial condition of the enterprise. In doing so, there are several areas:

  • 1. Measures to increase equity capital: increase in authorized capital; increase in profit from all types of activities and increase in the capitalized part of net profit.
  • 2. Measures to improve the management of borrowed capital: determination of the maximum volume of borrowed capital; formation of a rational structure of borrowed funds; efficient use of borrowed capital, etc.
  • 3. Measures to improve asset management: correct determination of the need for fixed and working capital for the organization of production activities; improving the efficiency of the use of fixed and working capital; improving the efficiency of long-term and short-term financial investments.

An assessment of the financial stability of an enterprise is important when planning an enterprise's need for capital and optimizing its structure.

The total need of the enterprise for capital is determined on the basis of the need for assets for the production, investment activities of financial transactions. Optimization of the capital structure can be carried out on the basis of:

  • 1) multivariate calculations using the effect of financial leverage. At the same time, the capital structure is chosen from the standpoint of the highest return on equity (see Section 10.2);
  • 2) minimizing the cost of capital. The cost of capital is the average price a company pays to raise capital from various sources. For example, the cost of raising capital from own internal sources is estimated by the return on equity; the cost of attracting loans is estimated by the amount of interest on the loan. To determine the optimal capital structure, they proceed from the possibilities of minimizing the weighted average cost of capital, taking into account all sources of its formation;
  • 3) the chosen asset financing policy. Different components of the assets are financed from different sources. Approaches to financing assets, depending on the attitude of managers and owners of the enterprise to financial risks, have their own differences. Usually there are three groups of assets:
    • fixed assets;
    • permanent part of current assets- the minimum amount of current assets required for the enterprise to carry out current production activities, which does not depend on seasonal fluctuations in the volume of activities;
    • variable part of current assets- part of current assets subject to fluctuations due to the seasonality factor.

There are three approaches to financing these asset groups (Table 10.5).

A conservative approach to asset financing assumes that non-current assets are financed mainly from equity and partly from long-term borrowed capital (up to 10%). The fixed part of working capital and half of the variable part of working capital must be fully financed from equity. The other half of the variable part of working capital is financed by short-term debt capital. This approach ensures a high coefficient of financial stability of the enterprise in the process of its development.

Table 10.5 - Approaches to financing the assets of an enterprise 1

Type of asset

Funding approach

conservative

moderate

aggressive

Fixed assets

Permanent part of current assets

Variable part of current assets

Designations: SC - equity; S/C - long-term borrowed capital; KPC - short-term borrowed capital.

Moderate approach to asset financing assumes that non-current assets and a constant part of working capital are financed by equity and long-term borrowed capital. At the same time, the share of equity capital is 75-80%. The variable part of working capital - at the expense of short-term borrowed capital. This approach usually provides an acceptable level of financial stability.

Aggressive approach to asset financing assumes that the role of equity in financing non-current assets and the permanent part of current assets is reduced to 50-60%. The variable part of working capital is fully financed by short-term borrowed capital. In some cases, all current assets are financed by short-term borrowed capital. This approach reduces the financial stability of the enterprise, creates problems in ensuring solvency, although it allows you to work with a minimum amount of equity capital.

  • Savitskaya GV Methods of complex analysis of economic activity: Textbook. - 4th ed. - M.: INFRA-M, 2007. - S. 322.

In trading practice, the following situation often occurs: the price, having reached a certain level, rolls back, then again tries to overcome this level or even reverses. This may be due to the accumulation of a large number of stop orders or pending orders at a given level, or be purely psychological in nature. Be that as it may, such levels take place and they are called support levels and resistance levels.

Introduction

The support level differs from the resistance level in that it is located below the price, as if supporting it and preventing it from falling below its value (see Fig. 1). And the resistance level, respectively, is located above the price and does not allow it to grow above its value (see Fig. 2).

Fig.1. Support level
Fig.2. Resistance level

Support and resistance levels are stronger the higher they are. Also, the support level after it is broken often turns into a resistance level. Conversely, a broken resistance level often becomes a new support level.

For example, in Figure 2, the price every time "bounces" from the value of 1.3000. This can be caused, for example, by the fact that many large traders and investors fix their profits at this mark. Those. their long positions at the 1.3000 level are set to take-profit orders, and when the price reaches it, these positions are closed by short selling, thereby moving the price of the USD / CAD currency pair down.

How is a level different from a line?

The essence of the lines and levels of support and resistance is the same. Both of them play the role of a border, beyond which it is very difficult for the price to break through. Levels are usually called horizontal lines on a price chart corresponding to a certain price value, and support and resistance lines pass at a certain angle, thus being a kind of linear function of price versus time.

We can say that levels are a special case of support and resistance lines with a price equal to a constant.

Support and resistance lines are constantly found on price charts when identifying a trend or various figures of technical analysis. Take a look at the picture below:

Resistance and Support in Technical Analysis Patterns

Absolutely all figures of technical analysis are based on support and resistance lines. Any figure (whether it is a reversal pattern or a trend continuation figure) implies breaking through one or another level (line) as a signal of its completion. I would even say that the figure of technical analysis is nothing more than a special case of applying support/resistance lines. Take a look for yourself:

The figure shows just a few examples, but if you wish, you can, after reading the description and trading strategy for any of the patterns, find out that it is based on the same good old support and resistance lines.

Mutual transformations of levels

In 90% of cases, the so-called mutual transformation of levels occurs - when support turns into resistance and vice versa, when resistance becomes support. This is especially true for strong levels that the price tested for a long time and rolled back from them many times before finally breaking through them.

How resistance becomes support

Having broken through the resistance level, the price, in the future, may roll back to it, but (if the breakdown was true) then again returns to growth. Thus, the level that used to be resistance becomes support.

The following main factors contribute to this metamorphosis:

  • Traders who did not have time to enter the growing market at the most favorable price (immediately after breaking through the level), begin to catch up and open long positions on the price rollback;
  • Those of the traders who entered short positions even when the level in question was resistance tend to close at breakeven, which, in turn, pushes the price up (after all, we remember that closing a short position is nothing more than opening long position of the same volume).

How support turns into resistance

A similar situation occurs when a support level becomes a new resistance level. This is facilitated by the following behavior of the players:

  • Those traders who did not have time to open short positions at the moment of the breakdown of the support level, open them on a rollback. Many traders who have already entered selling at a lower price are now averaging out adding short positions at a better rate;
  • Traders who previously opened long positions (when the level in question was still support) tend to close them at breakeven.

False breakdown of the level

This situation is sometimes referred to as "traders' remorse". Its essence is that the price first breaks through the price level, and then, not finding sufficient support from market players, it comes back.

When a resistance level is broken, traders wonder if the new price corresponds to the true value of the traded financial instrument? And when most of them come to the conclusion that the price is clearly too high, massive sales begin, and the price, accordingly, moves down, back to the level that was broken just now. This scenario is called a “bull trap”, because after breaking through the resistance level, many traders entered long positions, and after the price returned back, almost all of them suffered losses, closing in the footsteps.

A similar situation may arise after the breakdown of the support level. In this case, traders think about whether the price is too low? When most players come to the conclusion that the price is indeed quite low, and therefore a very attractive buying opportunity, the price begins to rise, moving back beyond the support level. This scenario is called a “bear trap”, for the reason that the bears, who opened short positions after the level was broken, then (after the price returned back) suffered losses.

The surest way to make sure that the breakdown was not a false one is to wait until the level reverses (i.e. until support turns into resistance or, conversely, resistance into support). To do this, after the breakdown of the level, you should wait until the price rolls back to it, and then reflects from it (thus confirming the truth of the breakdown). But it should be borne in mind that in the event of a breakdown of strong levels, it is not uncommon for the price to rush in the direction of the breakdown without even thinking of rolling back. Thus, it is possible to miss quite powerful price movements, potentially capable of generating huge profits.

How to draw resistance and support lines correctly

The support line is built on two successive lows, the third low serves as a confirmation of the constructed line. The resistance line is built on two highs, and the third high is considered to be its confirmation. Many sources indicate that the support line should have a positive angle of slope (i.e., it should be directed upwards), and the resistance line should be directed downwards. I think this is not entirely correct.

These lines can be tilted as you like to the time axis (they can look both up and down). Take, for example, the neck line on the classic Head and Shoulders pattern, it often has a negative slope, although in essence it is a support line.

Another thing is if we are talking about trend lines. In this case, indeed, the angle of inclination matters. So the uptrend line is nothing more than a support line directed upwards (with a positive angle of inclination). Well, the downtrend line is, respectively, the resistance line directed downwards (with a negative angle of inclination).

The trend line is another special case of support/resistance lines. For an uptrend, it is built on the lows and directed upwards, for a downtrend, on the highs and directed downwards.

All lines constructed in this way can be classified according to the degree of importance (or strength) as follows:

  1. The larger the time interval (timeframe) of the chart on which the line is drawn, the stronger it is considered. So the support line built on the daily chart should be taken into account when analyzing lower timeframes.
  2. The longer the line and the more touches by its price, the more likely it is to be broken. Here it is important to catch a certain golden mean, the third point of contact confirms the line, speaking about its truth and reliability, but further, with an increase in the number of touches, the reliability of the line gradually decreases.

Areas of support and resistance

I must say that the level, in itself, is a rather subjective concept. Everyone looks at the chart in their own way, and therefore the levels built by different traders may differ slightly from each other. Therefore, support/resistance lines and levels are often more correctly viewed as areas.

For example, one group of traders builds the resistance level based on the highs of the candles, the second - on the opening prices, and the third - on the lows of the candles. In this case, it would be more correct to speak not about a specific resistance level, but about a resistance area limited by the minimum and maximum values ​​of the price candles included in it.

Basic principles of trading by levels

The main thing for a trader is, of course, how you can use this property of the price (form lines and levels) to make a profit. There is a whole direction of trading on support and resistance levels.

Based on the properties of levels discussed above, there are two main methods for their practical use:

  1. Trading on the rebound from the level
  2. Level Breakout Trading

Obviously, the first of these methods is based on the assumption that the level is strong enough and that the price will not be able to overcome it. The second method, on the contrary, is based on the assumption that sooner or later the price will break through the level, and this breakout will be accompanied by a fairly strong price movement.

Often, traders build their strategies based on two of the above assumptions at once. This is quite possible when using pending orders.

A pending order is an order to a broker to open one or another position (long or short) when the price reaches a certain predetermined value (level).

Take a look at the picture below:

As you can see, the price approached a fairly strong support level. At the same time, we place two pending orders at once, one for buying (in the expectation that the price will reflect upwards from the level), the other for selling (in the expectation that the price will break through the level and go down).

At the same time, we place Stop Loss orders at the same levels as pending orders. Only Stop Loss for buying (Buy), we set at the level of a pending order to sell (Sell Stop), and Stop Loss for selling (Sell), we set at the level of a pending order to buy (Buy Stop).

Profit levels (Take Profit) are set at a distance from the corresponding pending orders, not less than 2…3SL.