How to Use Support and Resistance Levels in Forex Trading

 

Introduction

Support and resistance levels are key price zones where the market often reacts. Mastering these levels can help you find high-probability trades and avoid bad entries.

1. What Are Support and Resistance?

🔹 Support – A price level where buying pressure prevents further decline.
🔹 Resistance – A price level where selling pressure stops price from rising.

2. How to Identify Strong Support & Resistance Levels

Look for Multiple Touches – The more times price reacts at a level, the stronger it is.
Check Higher Time Frames – Daily and 4H charts provide the most reliable levels.
Watch for Breakouts & Retests – If price breaks a level and retests it, it may become a new support or resistance.

3. Best Trading Strategies Using Support & Resistance

🎯 Buy at Support, Sell at Resistance – Enter trades when price bounces off key levels.
🎯 Trade Breakouts with Confirmation – Wait for a retest before entering.
🎯 Use Stop-Loss Wisely – Place stops slightly beyond levels to avoid false breakouts.

Conclusion

Support and resistance are powerful tools for any forex trader. Learn to identify and trade these levels for better accuracy and profits! 📊🔥

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