When the forex market moves up and then pulls back, the highest point reached before it pulled back is now resistance.. as the market continues up again, the lowest point reached before it started back is now support.. in this way, resistance and support are continually formed as the forex market oscillates over time.. Sloppy risk management is the number one mistake that forex traders make, and this is also the top trading mistake. support and resistance can help traders to define their risk amounts for any. Technical analysis “a-b-c” starts with support and resistance forex traders use. from basic concepts to advanced techniques, support and resistance levels give an idea about when to jump into or out of a trade..
This video will show you how to draw support and resistance. i include a secret trick i used when i first started trading which makes it easy to identify support and resistance zones.. Support and resistance are specific levels or zones on the trading chart, where the price of a forex pair (or equity, commodity, etc.) is likely to find opposition. the reason for this is that these are psychological levels showing the different attitudes of the market players.. Support and resistance lines conform the most basic analytical tools and are commonly used as visual markers to trace the levels where the price found a temporary barrier..
