Support is the bottom price level. Resistance is the top price level. Support and Resistance level are more powerful as you see in this EURGBP Chart analysis. After hitting the support level, Market went up +9489 points profit in short time.
Does support and resistance really work?
Support and resistance breakout is the most reliable or at least one of the most reliable trading methods. The reason is that when a support or resistance is broken, it will work as a resistance or support, and so, it will make a barrier against the price that doesn’t let the price go against us and hit our stop loss.
How to use support and resistance effectively?
Support and Resistance are areas on your chart (and not lines) Support and Resistance can be identified using moving average. Don’t place your stop loss just below Support or above Resistance. Trading at Support and Resistance gives you favorable risk to reward. A Support and Resistance trading strategy.
