Support & resistance is THE most important technique you need to acquire for trading forex. There are many forms of support & resistance as I show you in a number of videos in the 100% free forex training course in the main website. To access the forex training course simply register in the box to the right of this article.
You bet it does 🙂 There are many forms of support and resistance, horizontal as in the diagram to the left.
Diagonal, trend lines channels and even fluid, moving support and resistance in the form of what are known as moving averages.
Why Does Support & Resistance Work?
Once again it works because traders from all over the world will be looking in the same area for price to react. Perhaps to stop and reverse, or simply bounce off before continuing a move. The longer the time frame you apply it to the stronger it becomes. For example if price has been bouncing off a support line for many years it is logically going to be seen by far more traders than one on a 5 minute chart.
If you wish to become a successful forex trader you must MASTER support & resistance. Often novice traders struggle when trying to place the lines. In actual fact the process is very simple. You are simply trying to put lines in the most obvious places.
Support & Resistance in Forex
Here is a video which introduces you to this concept. If you would like to know more and really learn how to use support and resistance in all its forms, simply register NOW for the 100% Free, full forex video training course.
Author: Marc Walton