Support and Resistance Technical Analysis & Support & Resistance Signals
Support & Resistance is one of vastly used concepts in Forex trading. Most traders draw horizontal lines to show these levels.
There is also an indicator used to plot these levels automatically & indicate the resistance & support levels.
When it comes to these levels price can either bounce off these levels or break these levels.
If a resistance level is broken price will move higher & the resistance level will turn to a support.
If a support level is broken price will move lower & this level will turn to a resistance.
Price where the majority of investors believe that prices will move higher, while resistance levels indicate the price at which a majority of investors feel prices will move lower.
Once price has broken through a support or a resistance then it is likely that the price will continue moving in that specific direction until it gets to the next support or resistance level.
The more often a support or resistance level is tested or is touched by price & bounces, the more major that particular level becomes.
Technical Analysis and How to Generate Signals
These levels are calculated a trend lines method.
Upward Trend
In an upward trend the resistance and support will generally head upward
Upward Trend
Downwards Trend
In a downward trend the resistance and support will generally head downwards
Downward Trend
