Posts Tagged ‘support and resistance’

In this video, you will learn about the psychological whole numbers, and how to use them in forex trading. In technical analysis, you might have noticed on your charts that prices react sharply at round numbers. As you can see on this chart, that this resistance level with a whole number is well respected has been tested multiple number of times. Price faced rejection at this resistance level […]

An uptrend is made of higher highs and higher lows. When you draw a line connecting two successive lows, then you get a support line or a bullish trendline. Each time the price visits this line, it acts like support, and pushes the price higher. Again, when you draw a line connecting the highs, then it is called as the resistance line. It pushes the price lower to look for support. At some […]

Traders use technical analysis to find support and resistance levels. Then use these levels as potential entry points for their trades. Sometimes, price oscillates between the support and resistance level to form a channel. These levels are often round numbers and have psychological significance. Hence, it attracts the attention of traders, once the price approaches these levels. When a support level breaks, it acts like resistance. Similarly, a broken […]

Indicators can be leading or lagging. Leading indicators help you predict potential reversals. For example, you can use the MACD divergence for a potential reversal. Lagging indicators are useful once a trend is established. For this, you can use the moving average indicator. Understand the concepts of support and resistance: Support refers to the level at which the buyers stop the price from falling further down. Resistance refers to the level where sellers […]

As a beginner in forex trading, you might have come across the terms support and resistance. For example, look at this chart. The support and resistance levels are marked as red in this chart. Support and resistance are important tools in technical analysis. On a psychological standpoint, a support level attracts more buyers with a hope that the price will not fall below any further. The demand is greater than supply. A resistance level attracts […]

Support and resistance refer to price levels in the financial markets. Support refers to a price level, where there are more buyers backing the financial asset from falling. Resistance refers to a price level, where there are more sellers pushing the market down. Support levels exist below the current price on a chart. It means more demand than supply. Resistance levels exist above the current market price. It means […]

In this video, you will learn about how to apply support and resistance along with candlestick analysis on your chart. For example, look at the EUR/USD daily chart. After five days of gain, the market forms a doji candlestick, which means indecision. This doji is formed at the 1.4409 level, which acts as near-term resistance. As you can see, the pair has failed to break above two times previously. The level 1.4409 […]

In this video, you will learn about support and resistance. Support is a level that prevents price from falling further down. This is a level that attracts the attention of the buyers. As buyers start buying at this level, it increases the demand of an asset. You can use the horizontal line tool available on your MetaTrader platform and the trendline tool in case of an uptrend. A resistance level is one which prevents price […]

This video is for beginners. In this video, you will learn about support and resistance in forex trading. Support and resistance levels represent the most basic concept in price action analysis in forex trading. A support level prevents price from falling further and indicates the presence of more buyers than sellers. There is more demand than supply in the market. A support level is identified as a level below the current market price. […]

In this video, you will learn about how to use support and resistance in your forex trading. Support and resistance are based on supply and demand of the financial asset. The supply and demand are controlled by the fundamentals governing a currency. Based on the fundamentals, a currency may appreciate or depreciate in value. So, you can mark the important support and resistance levels on your chart, which are psychologically significant. Then you can use them to find […]