![\"support](\"http:\/\/www.forextrainingacademy.com\/wp-content\/uploads\/2013\/05\/support-and-resistance.gif\" "\\"\\"")
<\/a><\/p>\nOften this can be a whole number as well, so for example on Gbp\/$ forex pair, 1.500 is a major area of support AND resistance.\u00a0There are different types of support and resistance and some indicators like moving averages are an example of flowing support but in this first video I will concentrate on the most basic and easiest example, horizontal support and resistance.<\/p>\n
Support & Resistance -How does it help the forex trader?<\/h2>\n
Traders all over the world are looking at areas where price is likely to stop or at least struggle.\u00a0Support and resistance lines therefore can give excellent clues as to where to buy, sell, take profit and place stop losses. All of which will be covered in greater detail later in the course. If you look at the diagram above you will also notice how candlesticks (which we covered in the previous video) combined with support and resistance lines give huge “clues” as to where price is likely to go next.<\/p>\n
Support & Resistance Is KEY To Your Success<\/h3>\n
If is imperative that you learn to master support and resistance. It is not difficult. All you are trying to do is place lines on your charts where other traders around the world are likely to be doing so on their charts, then you are well on the way to becoming a successful forex trader. \u00a0These lines are simply where the majority of traders expect or predict that price will change direction.<\/p>\n
This is an easy Forex technique that is the basis for ALL forex trades. Some important facts to consider before using support and resistance to trade Forex are:<\/p>\n
\u2022 When the support level is broken it becomes a resistance level, the opposite is also correct.
\n\u2022 Breaking the support and resistance levels is not an exact equation. You MUST wait for a candle to close to avoid false breakouts.
\n\u2022 Real breakouts are usually marked with a candle that has closed below\/above the support\/resistance level.
\n\u2022 Check charts on the different (larger) timeframes. The higher the time frame the more important the support and resistance levels are.
\n\u2022 If price bounces off the support or resistance line, that level becomes stronger.<\/p>\n
The stronger the support and resistance level is, the more profit can be gained when it\u2019s broken.<\/strong><\/em><\/p>\n Also you can often use these areas as targets for trades, ie where to take your profits.<\/p>\n So now you know what Support and resistance levels are, in the video I am going to briefly cover how to trade them.\u00a0Trading support and resistance levels can be divided into two methods: the bounce and the break.<\/p>\n If you would like to learn how to trade like a professional check out our 5* rated forex mentor program, RISK FREE; by clicking on the \u201cGet Started Today\u201d Button below<\/p>\n To find out more thoughts and inside tips on forex trading, take a look at some of our blogs<\/span><\/a>.<\/p>\nFind out more<\/h3>\n