Forex support and resistance

Forex Support And Resistance HOW TO DRAW FOREX SUPPORT AND RESISTANCE LEVELS

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Draw Support And Resistance

Support is an area on the chart where the market demonstrates strong buying action, easily identifiable by price ‘bottoming out’ caused by bearish price action movement being overrun by bullish pressure at a consistent point on the charts.

Support is often referred to as the ‘floor’ that price bounces off, or has trouble moving past.

Resistance is the opposite of support, its where you see price ‘topping out’ as the bullish price action movement is met with overwhelming bearish activity at consistent levels on the charts. Resistance is known as the price ‘ceiling’ that the market falls off, or has difficulty pushing through.

Support And Resistance

Support and resistance make up the major boundaries of ranging markets, when a market is range bound the only levels you really need to have marked out is the upper resistance ceiling and the lower support floor of the range.

Support And Resistance Mapping out support and resistance is really the most important core skill any serious traders will need to have a good grasp on. If you can’t draw your support and resistance then your trading as a whole will implode on itself.

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