Introduction
Support and resistance levels are key to identifying potential trade opportunities. Mastering them helps traders predict price movements and avoid bad trades.
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 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 give the most reliable levels.
✅ Watch for Breakouts & Retests – Price breaking a level and retesting it can signal a strong move.
3. How to Trade 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! 📊🔥