Forex Support and Resistance Tips and Tricks

in LeoFinance •  3 months ago  (edited)

Direct from the desk of Dane Williams.



Are you trying to learn forex trading?

It all starts right here with my simple forex support and resistance strategy.

Within this guide, you'll learn my trading strategy that combines forex support and resistance with powerful price action setups.

It's time you became a consistently profitable forex trader.


4 Forex Support and Resistance Tips and Tricks

Here are a list of 4 tips, tricks and final thoughts around placing forex support and resistance zones.

  1. Forex support and resistance zones aren't brick walls: Don't fall into the trap of thinking that a support/resistance zone on your chart is an impenetrable barrier that price can't ever break. They're merely a guide where you think other traders are going to be doing business.

  2. Forex support and resistance zones are interchangeable: That is, once broken, support will often then act as resistance and vice versa. This is why I usually always refer to support and resistance zones using both words together.

  3. The more touches a forex support and resistance zone receives, the more significant it will be: Notice that I didn't say that more touches on a zone makes it stronger? Touches add significance because more and more people start watching and building orders around the zone.

  4. When price pokes through a forex support and resistance zone before reversing, stops are being hunted: No, this is not your retail forex broker trying to specifically screw you over. This is smart money from banks and institutions taking advantage of stop orders that are clustered just beyond obvious support and resistance zones. By waiting for these clusters to be cleared, you can ride on the coattails of the big boys.


This brings the support/resistance section of this trading guide to an end.

Next up, we're going to move onto price action and then finally get to combining the two to actually trade my strategy.

Best of probabilities to you,

Dane.



FOREX BROKR | LeoFinance Blog
Daily market analysis and education.

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Thank for sharing.
I don't understand more just now.
It is still a long way for me.
Which trading do you think most risk in Cryptocurrencies, Forex and Stock?

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Which trading do you think most risk in Cryptocurrencies, Forex and Stock?

They should all have the same amount of risk.

Which ever your choose to trade, just focus on risk management (setting stop losses) and you'll be fine.

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I always wondered specifically about the extra details into the resistance/support zones of markets and the underlying effects of playing with those prices they have set. So it sounds a bit like you can play near them and know buys will come soon after yours, should the price drop just under and into those zones with the then big buys of bigger institutions to help the price gain additional traction back up passed your buy price.

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They're pretty much just a level where people see value.

So it sounds a bit like you can play near them and know buys will come soon after yours

If you have a support zone that price is falling down into, then you know there is most likely to be some sort of buying again. The opposite is also true with sellers at resistance.

I'll speak more about what I use as confirmation for a support/resistance zone holding, later in this guide once I start to talk about trade entries.

Bear with me ;)

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@forexbrokr, nice points you outlined! Thank you! The number 4 is really very cool one!

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This course that you are doing is very interesting, simple and easy to understand, regarding this article I liked point 4, I think that is why it is important to see the brokers' order book, right?

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