davidpato123
New Member
A Forex strategy based on support and resistance levels involves identifying key price levels where the market has historically reacted. Traders often buy near support and sell near resistance. It's important to confirm these levels using other indicators or patterns before making trading decisions. Keep in mind that support can become resistance, and vice versa, if the price breaks through these levels. Always consider risk management and market trends in your strategy.
Support and resistance levels are important concepts in technical analysis. Support is a price level at which a financial instrument's price tends to stop falling and might even bounce back up. Resistance, on the other hand, is a price level at which a financial instrument's price tends to stop rising and might turn back downward.
Support and resistance levels are usually identified based on historical price data where the price has previously reacted. Traders use these levels to make decisions about entering or exiting trades. When the price approaches a support level, traders may look for potential buying opportunities, while around resistance levels, they may consider selling opportunities.
It's important to note that these levels are not exact points, but rather zones where price action can show significant reactions. Traders often use additional tools such as trendlines, moving averages, and candlestick patterns to confirm the validity of support and resistance levels before making trading decisions.
Support and resistance levels are important concepts in technical analysis. Support is a price level at which a financial instrument's price tends to stop falling and might even bounce back up. Resistance, on the other hand, is a price level at which a financial instrument's price tends to stop rising and might turn back downward.
Support and resistance levels are usually identified based on historical price data where the price has previously reacted. Traders use these levels to make decisions about entering or exiting trades. When the price approaches a support level, traders may look for potential buying opportunities, while around resistance levels, they may consider selling opportunities.
It's important to note that these levels are not exact points, but rather zones where price action can show significant reactions. Traders often use additional tools such as trendlines, moving averages, and candlestick patterns to confirm the validity of support and resistance levels before making trading decisions.
