Learn Support And Resistance

moonchild

VIP Contributor
Support and resistance are levels that are very crucial in Forex charts, these are levels that when price reach will probably reverse, consolidate or break the level.

To spot these levels on your charts is very easy first of all you need to convert your candlestick to line chart, after that then you'll use the cross hair too and move it from up to down and notice if there is any place that the line chart touches the cross hair tool twice. make sure the touches are very obvious, then go to your tool bar and click the horizontal line then place it on the two points.

This is the procedure for finding accurate support and resistance, after placing the horizontal line, convert your line chart back to candle sticks you'll notice that the candles reacts to the line, this is a good technical confluence when you want to make decision on entering a trade.

In forex trading before we place a trade we look for confluence, confluence means reasons why we should enter a trade, if we find multiple reasons then we enter.

Support and resistance is one of the best strategies you can use to trade the market, it helps in setting moderate stop loss too because it's a key level.
 

Kingstone

Active member
Wow. This is a new strategy. I do not usually convert my candlestick to lines. I always use to draw the support and resistance lines using the candlestick and the market used to respect them for some days before new ones will begin to form. But I used to ensure they touch the levels more than two times. Two times seem too small as it may be a consolidating area. So I tried to get like 3 or more to place the levels.
 
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DnWayne

Guest
It's a good strategy, have seen how it works: placing horizontal lines on the line graph peaks and troughs and shifting back to candlesticks chart it's a plus to Price Action to place support and resistance levels easily. Thanks
 

btaliat

VIP Contributor
I don't really know how to draw line chart. I have been trying to use binance application to do it but it is not working. I once tried to use trade view app, though it worked but I didn't get it. I wish I know how this is drawn, maybe it would have helped me in saving and making some profits while trading.
 

Sotherefore

VIP Contributor
Well if you don't really know how to draw then you need to get yourself attached to people that know how to draw a perfectly because I no understand any trade you are entering it is always important for you to know support and resistance so that you can know when to take profit and went to enter a trade... Even if you are interested to learn how to trade forex perfectly the first thing you will be introduced into is how you should be able to draw the support and resistance.. because that is just the foundation of trading and that is what a lot of experts are using when they are risking so much money. Just try and learn it if you are interested to trade.
 

Setho

VIP Contributor
Everything about price action is basically about human psychology and the way in which humans have been treating the financial market. The principal of support and resistance is one of the basic things of trading the financial markets and it is something that everybody should know depending on your trading strategy. This is going to help you a lot in knowing when to pick up positions and also when you can be able to attach things like your stop loss and your take profit. You can then be also able to know how people are normally reacting to the brackets .
 
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