Learn About Support and Resistance with Technical Analysis Training One of the most difficult concepts for beginning traders to grasp is that of support and resistance . This may happen because you rarely notice support and resistance until you actually encounter it, and still without using multiple timeframes it can be hard to recognize what is actually happening . There is a lot of effort and time that go into using technical analysis training to determine where support and resistance levels are in the market . A variety of tools have been put to use, including those like candlesticks, moving averages, candlesticks, as well as retracement levels. Some work, some do not , and more irritating, some work from time to time but not all the time . The information on whether or not an indicator or tool is going to work is information worth a lot of money . Most efforts fall short because they attempt to use a single tool , and they try to put it in one timeframe , and try to apply it under all circumstances . You reap better results when various tools, optimized for a particular condition of the market , are employed in a wellthoughtout and highly organized program that encompasses both trends and congestion action . Technical analysis training will continue to show that progressing towards precision will occur as you use various tools and apply them to different timeframes and there is consideration of the various results. The best results come when you use a total theory of action on the market that can help the trader understand what the market is doing right now , why the market is doing that, what's going to occur rather quickly, and supply the trader with projected levels of support and resistance that can be monitored in real time as the market steps forward . A tall order ? Maybe , but it has been accomplished in a number of major technical analysis systems . Here's a look at a few definitions . Something below price is support, and it is a force that when encountered pushes price back up into the range from where it came . It consists of buyers who are present in the market but waiting to move until price reaches a certain level , or of those short position holders that have to buy if the market begins going against them. This group of buyers that flock around a particular price that make support occur . Something above price is resistance, and this force pushes prices back down to where they were when it is encountered . This includes those sellers waiting to make a move until price reaches a certain level , or of long position holders who may be forced to sell if the market runs against them . You can identify support and resistance with conventional technical analysis like a 10period moving average . Or a more involved system can be represented like you learn in technical analysis training , Drummond Geometry being one example.
With this method we see a more evolved use of tools to provide in support and resistance areas a higher time period overlay to a daily chart, coming from the weekly and even the monthly charts. These more evolved methods provide traders with more support when making decisions to buy or sell . When using this method you can project into the future areas of support or resistance, so the trader can prepare himself as the market steps forward .
Author: Peter Markham is a Forex and financial futures trader with 30 years practical experience in the markets. He received his education in Sydney and Los Angeles and has been a trading consultant worldwide. He has written widely on Technical Analysis Training. Among the many choices Peter recommends this technical analysis training for an original and productive trading approach.