Rating: Empty Star Empty Star Empty Star Empty Star Empty Star
Support & Resistance.
45656

Member Since Jun 29, 2019  40 posts 45656 Aug 09 at 17:36
Support levels are made as a market turns higher. Along these lines, on the off chance that a market is moving lower for instance and it, at that point alters course and starts moving higher, it either has made a degree of support or skipped off a formerly existing degree of support. Resistance levels are made as a market turns lower. In this way, on the off chance that a market is moving higher for instance, and it at that point altered course and creatures moving lower, it either has made a degree of resistance.

steve_25

Member Since Aug 03, 2019  7 posts steve_25 Aug 14 at 07:02
Both support and resistance are an important tool of technical analysis.

Support prevents the price from falling further. It is a point on chart where the trader expects maximum demand in terms of buying. Whenever price falls to support level it is likely to bounce back. This level is always below the current market price.

Resistance is opposite of support . It prevents the price from rising further. At this point on the chart traders expect maximum supply in terms of selling. This level is above the current market price.

So the idea is to buy near support in up trends and sell / short sell near resistance in downtrends.

Abhijeet

Member Since Aug 14, 2019  3 posts Abhijeet Aug 14 at 09:09
That is the idea but in practice I find it very difficult to trade S+R . There are so many fake outs. it is easy to find S+R trades in hindsight but in live market there are too many losing trades. I prefer momentum strategies these are easier to identify and more reliable IMHO

jakes90

Member Since Jul 31, 2019  5 posts jakes90 Aug 17 at 05:36
Support and resistance are the most important parts of technical analysis. Support can be thought as the floor price after which the prices bounce back and start rising and resistance is like a ceiling price, touching which the prices start to fall again to reach the next support level. These two together can help a trader make a winning strategy and secure high returns. There are various methods by which you can choose a price to be a resistance or support level.

AniLorak

Member Since Apr 18, 2017  664 posts AniLorak Aug 17 at 15:17
jakes90 posted:
Support and resistance are the most important parts of technical analysis. Support can be thought as the floor price after which the prices bounce back and start rising and resistance is like a ceiling price, touching which the prices start to fall again to reach the next support level. These two together can help a trader make a winning strategy and secure high returns. There are various methods by which you can choose a price to be a resistance or support level.


True; support & resistant tool is the most important tool! I basically mark the market trend based on the Support/Resistant levels! In this case, D1 is my 1st choice!

Macdulio

Member Since Dec 26, 2018  11 posts Achilles Dent (Macdulio) Aug 18 at 08:53
The triangle sharp ends are the averages of the 4H divergences. What are the support and resistance levels, if not these?

The reason for a divergence is that the trajectory of an incline/decline was broken by an accumulation / distribution, and since there are now participants holding the bag – they are under water ever since they opened, they would likely want to get rid of their unwanted positions for a break even, plus those, whom are in gains, may just have their 1-pip beyond the opening price protective stop loss placed. These events may tip the fragile balance of the scale that has been fueling the progress in a direction.

If you can point out these levels before hand then you can prepare on time to make the necessary changes.

macdulio@
Please login to comment.
Current Account Balance (13 min)
USD/CHF retakes 0.9800 handle, focus rem...(2 min ago)
EURUSD 1.10961 GBPUSD 1.21339
USDJPY 106.496 USDCAD 1.33028

Tools

Community

Reviews

Brokers

Platform

Support


Twitter |  Facebook |  Site Map  |  Terms  |   Privacy Policy
©2019 Myfxbook Ltd. All Rights Reserved.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions. Any data and information is provided 'as is' solely for informational purposes, and is not intended for trading purposes or advice. Past performance is not indicative of future results.