If you want to master forex trading, you must master the game of support and resistance levels.
These aren't just lines on the chart; they're golden dots that determine your decisions Technical Analy
✦ What do support and resistance mean?
Support: The level from which the price often bounces when it's going down.
Resistance: The area where the price hits when it's going up.
These levels act like psychological walls in the market_
The more they're tested, the stronger they become
✦ How do we use them in technical analysis?
- Draw lines on previous highs and lows.
- Monitor how the price reacts to them (rebound? breakout?)
- Use tools like price action or candlestick patterns for confirmation.
✦ Why are they important for speculators?
Because you simply:
- You determine where to enter the market
- You set a logical stop loss
- And you know when to take your profits
✦ Mistakes to avoid:
- Relying solely on support and resistance without additional confirmation
- Drawing lines inaccurately or exaggeratingly
- Entering directly at the breakout without a confirmation candle
✦ Combining it with other tools?
Of course! Try using it with:
- RSI indicator
- MACD
- Fibonacci retracement
This combination gives you a comprehensive technical analysis that helps you make smarter and faster decisions.
✅ Article Summary
Discover effective strategies for forex trading success and maximize your market potential with proven tactics. Start trading smarter today!