Drawing Support And Resistance The Right Way

[moonchild]

Support and Resistance are the alpha and omega of trading the foreign exchange markets.

My mentor always say, it's all about levels, and this is very true, forex is really about levels and how to spot them and this is what this post is going to talk about.

To draw an accurate support and resistance level you have to switch your charts to line chart and also, if you're using a phone you should turn the view to a horizontal view and if you're using a computer that's the most preferable.

After that you should start with the daily timeframe and the reason for this is the higher time frame the higher the strength of that level.

After you go to the higher timeframe you should start noticing using the cross line tool where there is two touches and make sure the touches are accurate.

After you spot the two touches, grab your horizontal line and place it there, you have just find a support and resistance.

Go on and find two more and then move to four hour frame or you can switch to weekly time frame and draw your lines too.

After drawing the line you should wait for price to reach that level before taking action

 

[Setho]

The ability to be able to identify a resistance and support levels looks easy but it is something that actually suffered a lot of people. The most important thing is that you should try to avoid every form of bias as possible because it is going to make you to make a lot of mistakes if you don't .

Whenever you are growing trend lines it is very important that you should know what support and resistance is. A support zone is usually a place where anytime price comes down to it usually does not penetrate while on the other hand is supposed to is usually when prices go up but it cannot be able to penetrate it as well .

A zone might not necessarily be a line but instead it might be an area . In this way what you are going to be identifying or your target is going to be any price movement outside that particular so that you have knocked out .

Generally it should take around three tabs and some people are even going to say more than that for you to confirm and area of support or resistance . Whatever line that you are doing should be a straight line by tall is entirely of vertically or sideways.

 

[Mary Frederick]

Forex can be taken an full time trading business and many traders are finding growing interest in it. Good trading tactics and development of right trdaing strategy are needed for better return. FXOpulence allows all tarding strategies on their platform.