What is support & resistance forex?

Support and Resistance Forex Typically when the price breaks through a particular price area that was either identified as support or resistance, it will become the opposite of what it was before. So if the price was rising and it broke through a resistance area, that resistance area will act as a support area for the price.

What are support and resistance?

Support and Resistance are an integral part of technical analysis. They typically refer to an area where the price action is likely to pause and change the direction. A support area has the potential to stop the falling prices. Traders expect the price of an instrument to recover from a support level.

How to make profit using the support and resistance trading strategy?

If you find the market moving flat in sideways, draw a horizontal line at the top price level and another line at the bottom price level. The Top line is Resistance and the bottom line is support level. Now, you got some idea about support and resistance level. Let’s see how to make profit using the support and resistance trading strategy.

How do resistance and support levels affect a market?

They can be affected by a variety of factors. Not all support and resistance levels are equal. Minor levels will temporarily delay rising or falling prices within a larger trend, while major ones could stop and reverse a trend altogether. The more times a market bounces off a support or resistance level, the stronger it is seen as being.