Technical Indicator Support Resistance Levels Explained

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 zones.

Support Resistance Trading Indicator - Indicator Support & Resistance Areas

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 zone will turn to a support.

If a support level is broken price will move lower and this level will turn to a resistance.

Price where the majority of investors believe that prices will move higher, while resistance zones indicate the market price at which a majority of traders 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.