After Reading this post you will be able to Draw Support and Resistance Levels Properly Like Professional traders. Horizontal levels have very importance role in the field of forex trading business and we called them Support & Resistance. First we discuss support & then resistance accordingly.
As we know that forex market moves in three directions
Forex market needs base to move higher and higher so the market creates bases below their prices and these bases call support like EURUSD chart below.
As we clearly see market moving upside but before moving high it found a base which is called support to move higher. Similarly when market is in range and don not move upside or downside then it moves in sideways like GBPUSD chart given below.
In Forex market moves lower after touching strong upper horizontal levels which work like roof we call these lines resistance. When Forex market needs to move down side they touch resistance and move lower. Example of Resistance shown in NZDCAD chart.
As you see in my weekly forex trading analysis I always use support & Resistance in my forex commentary. Now we see how to draw these important support & resistance lines. First we zoom out the chart and we see the most obvious swing low and swing highs in the chart for example:
Draw Horizontal lines on these obvious swing low and swing highs they will work for you in future and will tell you future market predictions.
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