Two years
ago on this blog I posted a topic on trading forex using support and resistance
indicator, but didn't explain it at length.
Every day I
trade forex , am always on the lookout for support and resistance levels. If
you call yourself a forex trader, and you are unable to spot the levels, than I
advice you stop trading forex, because it is the most basic concept of trading.
A Support
level is where buying pressure overwhelms selling pressure enough to interrupt
or reverse a downtrend. Conversely, a Resistance
level is where pressure is strong enough to overcome buying pressure such
that an uptrend can be stopped temporarily or reversed. A strong resistance
level is more likely to block further advance even if prices slightly pierce
through resistance, and such a situation presents traders with an excellent
shorting opportunity.
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