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Feature 9: PAT Zone

PreviousFeature 8: Scalp SetupNextFeature 10: S/R Breaks

Last updated 1 year ago

PAT Zones are the key support and resistance zones on a price chart that indicate areas where buying and selling pressure is concentrated. These zones are formed based on historical price action and are used in technical analysis to make trading decisions.

  • A support zone is a price level or area where buying pressure outweighs selling pressure, causing the price to reverse or bounce back. It represents a floor below which the price tends to find support and potentially move higher. Traders often look for support zones to identify potential entry points for long trades or to place stop-loss orders.

  • A resistance zone is a price level or area where selling pressure outweighs buying pressure, causing the price to stall or reverse. It represents a ceiling above which the price struggles to break through. Traders often look for resistance zones to identify potential entry points for short trades or to place profit target orders.

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