Support and Resistance in FOREXSupport and resistance is one of the most fundamental types of chart analysis in FOREX trading. When price on a chart climbs and reaches a point that it could previously not exceed this is point is known as resistance. It is at this level that more sellers have come into the market forcing the prices back down again. Conversely, when price is falling and reaches a market low this low is known as support because this is the place that buyers have come back and forced prices to rise again. When price rises above resistance or below support this is known as a "breakout" and a possible indication that prices may be headed further in the direction of the breakout. Not all highs are levels of resistance and not all lows are levels of support. The video below gives a explanation of spport and resistance in FOREX which of course can be used for trading stocks, commodities or any other type of traded instrument. | |||
__________________________________________________________________________________ U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options or any financial product. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
All content copyright 2004-2011 Trading Currency Online .com |
|
|
|
|
|
|
|
|
