Introduction
Support and resistance levels are key price zones where the market tends to react. Mastering these levels can help you find high-probability trade setups and avoid bad entries.
1. What Are Support & Resistance Levels?
🔹 Support: A price level where buying pressure is strong enough to prevent further decline.
🔹 Resistance: A price level where selling pressure stops price from rising higher.
2. How to Identify Strong Support & Resistance
✅ Look for Repeated Touches – The more times price respects a level, the stronger it is.
✅ Use Higher Time Frames – Daily and 4-hour charts provide more reliable levels.
✅ Check Previous Swing Highs & Lows – Past turning points often act as future support or resistance.
3. Best Strategies for Trading Support & Resistance
🎯 Breakout & Retest Strategy – Wait for price to break a level, then retest before entering.
🎯 Bounce Trading – Enter long at support and short at resistance with confirmation signals.
🎯 Confluence Trading – Combine support/resistance with indicators like moving averages or Fibonacci retracements for stronger confirmation.
Conclusion
Support and resistance levels help traders spot key market turning points. Learning to trade these levels effectively can improve accuracy and increase profitability in forex! 📊🔥