Introduction to Support and Resistance

Page 1

Introduction to Support & Resistance Levels


Agenda • What are support/resistance levels? • How to identify support/resistance – Simple horizontal lines – Trendlines – Fibonacci Retracement levels

• Advantages of using support/resistance


Support and Resistance levels


Support level The price level at which the currency has historically had difficulty falling below

Support


Resistance level The price level at which the currency has historically had difficulty trading above

Resistance


How to Identify Support/Resistance Simple Horizontal lines Trendlines Fibonacci Retracement levels


1. Simple Horizontal Lines

Resistance

Support


1. Simple Horizontal Lines

Resistance

Support


2. Trendlines


2. Trendlines Resistance

Support


2. Trendlines Resistance

Support

Resistance

Support


3. Fibonacci Retracement levels


3. Fibonacci Retracement levels


3. Fibonacci Retracement levels


3. Fibonacci Retracement levels


Advantages of using support/resistance


Support and Resistance levels help you determine: • Entry levels


Support and Resistance levels help you determine: • Entry levels • Exit levels: Stop Loss and Take Profit orders


Support and Resistance levels help you determine: • Entry levels • Exit levels: Stop Loss and Take Profit orders


Support and Resistance levels help you determine: • Entry levels • Exit levels: Stop Loss and Take Profit orders


Summary • What are support/resistance levels? • How to identify support/resistance – Simple horizontal lines – Trendlines – Fibonacci Retracement levels

• Advantages of using support/resistance


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