# Diagonal Support and Resistance

In the financial market, we can observe the diagonal price patterns frequently. Diagonal support and resistance are the typical price patterns we can observe as the results of the combined effect of Equilibrium and Fractal Wave process. Diagonal support and resistance are not different from the horizontal support and resistance. When the connected peaks 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 variations comparing to the horizontal case. Firstly, we can have the ascending diagonal support and resistance. Secondly, we can also have the descending diagonal support and resistance. For your convenience, we have listed all the possible diagonal support and resistance patterns in Table 2-2. We have also listed 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 the horizontal support and resistance. You can apply the proportional threshold method and the Fibonacci threshold method for your entry for the case of diagonal support and resistance too. The trading example is shown in Figure 2-14. How to calculate the threshold level for Y Buy and Y Sell are identical to the case of horizontal support and resistance. As in the horizontal support and resistance, it is sensible to set your stop loss level greater than the minimum stop level.

 Support and resistance Price Action Direction Example Ascending Diagonal Support Reversal Buy Figure 2-6 Ascending Diagonal Support Breakout Sell Figure 2-7 Ascending Diagonal Resistance Reversal Sell Figure 2-8 Ascending Diagonal Resistance Breakout Buy Figure 2-9 Descending Diagonal Support Reversal Buy Figure 2-10 Descending Diagonal Support Breakout Sell Figure 2-11 Descending Diagonal Resistance Reversal Sell Figure 2-12 Descending Diagonal Resistance Breakout Buy Figure 2-13

Table 2-2: List of diagonal support and resistance patterns for your trading.

Figure 2-6: Support example as in the direct pattern recognition on EURUSD H4 timeframe.

Figure 2-7: Support example as in the direct pattern recognition on EURUSD H4 timeframe.

Figure 2-8: Resistance example as in the direct pattern recognition on EURUSD H4 timeframe.

Figure 2-9: Resistance example as in the direct pattern recognition on EURUSD D1 timeframe.

Figure 2-10: Support example as in the direct pattern recognition on EURUSD H4 Timeframe.

Figure 2-11: Support example as in the direct pattern recognition on EURUSD H4 Timeframe.

Figure 2-12: Resistance example as in the direct pattern recognition on EURUSD H4 timeframe.

Figure 2-13: Resistance example as in the direct pattern recognition on GBPUSD H4 timeframe.

Figure 2-14: Resistance Trading example as in the direct pattern recognition on GBPUSD H4 timeframe.

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