Posts Tagged ‘support and resistance’

In this video, you will learn about price action analysis using support and resistance levels. Candlesticks form the basis for price action trading. It is important that you first identify the support and resistance levels in your technical analysis, besides looking to trade the trend. It should be part of your trading strategy to gain an edge in the market. Horizontal Price Levels: You can mark support and resistance levels […]

In this video, you will learn about using the Bollinger Bands indicator to identify support and resistance levels in forex trading. This indicator consists of the 20-period simple moving average as the middle line and the outer bands represent the standard deviation of the middle band. This band also resembles a price channel. This indicator better represents the crowd behavior of the markets as they are used by most traders across the world. You can determine […]

In this video, you will learn how to use support and resistance in forex trading. Using support and resistance in forex trading is the most common method in technical analysis for analyzing price action. You are looking to identify potential reversal points on the chart and mark them with horizontal lines. They are correlated to supply and demand of a currency. A support level is a zone where price is prevented from falling further. […]

Support and resistance are important tools in technical analysis. In this video, you will learn how to use them to find good entries in forex trading. You can use a support level to buy and a resistance level to sell. You should start by marking the important support and resistance levels, by using the horizontal line tool on your MetaTrader platform. For example, look at this chart. The support and resistance levels are marked with horizontal […]

Support and resistance are important tools in technical analysis. Identifying a support or resistance level is key to success in forex trading. Hence, you should learn how to identify them and draw them on the chart. For example, look at this chart. As you can see, the support level is marked on the chart. It is marked at a key round number of 1.3750. This means that it is psychologically significant level. As you can […]

In this video, you will learn about the psychological basis of support and resistance. Beginner traders may not give importance to the psychological analysis of support and resistance. A support or resistance level being a large round number is due to the psychology perceived by traders. More often when price touches a support level, more significant it becomes. It attracts the attention of traders because it is now perceived as a double bottom chart […]

In this video, you will learn how to draw support and resistance lines on your chart and use them to trade the markets. You can use the horizontal line tool from your MetaTrader platform. As you can see on this chart, at the top, price has touched this spot two times. Now, you can use the horizontal line tool and draw your resistance level. Next, you can move downwards […]

In this video, we are going to talk about support and resistance, and the most basic but extremely effective, previous highs and lows. As you can see from this example, this is an uptrend. This is the high as indicated by the arrow. After that, there is a pullback, and the market breaks this high. This previous high now becomes support. So, you can enter long here, and hold as long as the market […]

Moving average is a technical indicator to observe support and resistance. They are a lot similar to trendlines and channels. But they help identify the direction of the trend a lot clearer. Also, they show the  strength of the trend. By adding a combination of moving averages like 50-period, 100-period, and 200-period, we can identify a long-term trend and the strength of the trend. Moving averages in addition to other indicators like MACD and RSI provide great entries in the direction of an existing […]

Trendlines are drawn using a single line. However, channels comprise of two lines which are drawn parallel, whether it is a rising, falling trend, or a trading range. Channels provide us with the upper and lower boundaries of a trading range in order to find suitable entry and exit points. Ascending channels captures the slope and price range for an uptrend. Descending channel tells us about the slope and price range of a downtrend. A flat […]