Forex support and resistance

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Topic

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Draw Support And Resistance Support And Resistance

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Forex Support And Resistance Trending Markets

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The Weekly And Monthly Levels Support Vs. Resistance

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Photo Gallery

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Contact Us

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The ability to draw support and resistance correctly is learned over time and patience, so don’t give up. If you’ve got a chart that’s loaded up with so many lines that you don’t even know what you’re looking at anymore, then you’re doing it wrong. Acquiring the skill of marking out support and resistance is super important for any trader because it’s the backbone of any trading system you come across.


Forex Support And Resistance levels are proven price areas where buyers and sellers find some form of equilibrium and generally a shift of power between buyers and sellers occur that creates the ‘price reversal’. Therefore Support and Resistance are the key turning points in the market.


A quick search of the forums and it didn’t take me long to find traders posting up charts littered with Forex Support and Resistance lines that are way overdone. Instead of keeping things straight forward and simple, this trader has gone overboard and created an environment that is impractical and just down right too difficult to trade in.


Trending markets are identified by using swing points patterns, broken down into higher highs, higher lows, lower highs and lower lows. These key points are called swing highs and swing lows and the order they form in can help identify trends, especially in their early stages.


On a larger scale, strong weekly and monthly levels should be marked on your chart when current price is the vicinity of them. Support and resistance levels on this timescale are major turning points in the market and want to be paid close attention to. Strong daily price action signals that occur at significant weekly or monthly S/R can be the catalyst for a strong move and a very profitable trade.


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.

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.



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