What is the rebound line strategy?
Line rebounding is a graphical pattern which seeks to catch a moment when the price cannot break support or resistance levels.
When the price reaches the level of resistance and the first candlestick closes below this level many traders believe that the price upward dynamic has stopped. And trade for a fall.
Rebound line strategy and a trend
The rebound line strategy is relevant for a neutral trend just as for the upward and the downward trend. When the price reaches the support line and the first candlestick closes above this level some market participants believe that the price decrease dynamic has stopped and trade for a rise.
The support line rebound is relevant for the neutral trend just as for the upward and downward trends.
You can read more about support and resistance trading strategy or about situations when price breaks support or resistance.
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