Notes

How to Trade Support and Resistance in Forex Market
A basic understanding of support and resistance in the forex market will make trading easier for you. The most important aspect of this concept is that you must be able to spot potential support and resistence levels. In the next lesson, you will learn how to trade the diagonal support lines, also known as trend lines. These levels act as the primary support and opposition points, which are highly valuable in determining the direction of the trend.
The term "support" and "resistance" refers to lines on the chart that have significant buying and selling power. As the price approaches the resistance level, buyers are less likely to buy. This is because they think that they will lose money if the price reaches the resistance level. Thus, they will sell and will buy less. As a result, the market will reverse, and you will have a winning trade.
The resistance level is the exact opposite of support. When the market reaches a certain level, it will bounce back. As long as the price remains above the resistance level, it will continue to increase. However, if the price is above the resistance level, it will soon break it. As such, traders should treat the Support and Resistance levels as a set of levels on the chart and treat them as a signal to short or long positions. To use the resistance levels correctly, you should watch for a number of peaks and troughs on the chart. If there are repeated ZFX外匯開戶 of prices failing to move beyond a particular level, it is highly probable that the price will reverse.
As previously stated, the role of support and resistance in the forex market is important for traders. In order to use it correctly, traders must watch for a strong signal in either direction. It is important to wait for a strong breakout signal and keep their stop-loss below the support level. This will minimize the risk of a false breakout. They should also put their stop-loss below the target and profit targets above the resistance level. While aiming for a fixed return, they should keep in mind that support and resistance levels are only a guideline.
As previously mentioned, support levels are the areas in the forex market where price will not fall. This means that it will bounce back to the high when it has failed to fall below the level. The level will be the same for all trading pairs of the currency. This is why support and resistance levels are important for the forex market. This is why it is so crucial to identify these levels in your charts and analyze them properly.

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