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Support & Resistance Technical Analysis and Support and Resistance Signals

Support and Resistance are fundamental concepts within Forex trading, with traders typically marking these levels with horizontal lines.

Furthermore, an indicator exists that automatically plots these critical levels and highlights both resistance and support zones.

Support Resistance Indicator - Indicator Support and Resistance Areas

When it comes to these technical levels price can either bounce off these levels or break these technical levels.

When a resistance level is breached, the price will rise, and that resistance will convert into support.

Should the price successfully breach a recognized support level, subsequent movement is expected to trend lower, and that broken support level will reform as a resistance point.

Support levels show where most investors think prices will rise. Resistance levels mark spots where many traders expect prices to drop.

After price breaks support or resistance, it often keeps going that way. It heads to the next level.

When a level of support or resistance is tested or touched by the price and bounces off it often, that specific level becomes more important.

Technical Analysis and How to Generate Trading Signals

The trendlines approach is used to determine these values.

Upward Trend

In an uptrend, support and resistance levels slope upward.

Resistance and Support Indicator Upwards Trend - Indicator Support and Resistance Areas

Upward Trend

Downwards Trend

In a downtrend, support and resistance levels slope downward.

Indicator Support and Resistance Areas

Downward Trend

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