Support & Resistance Technical Analysis and Support and Resistance Signals
Support and Resistance is one of widely used concepts in Forex trading. Most traders draw the horizontal lines to show and illustrate these levels.
There is also an indicator used to plot these levels automatically & indicate the resistance & support zones.
When it comes to these technical levels price can either bounce off these levels or break these technical levels.
If a resistance level is broken price will move higher and 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 the prices will move higher, while resistance zones indicate the 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 the price will continue going in that specific direction until it gets to the next support/resistance level.
The more often a support resistance level is tested or is touched by price & bounces, the more major that specified level becomes.
Technical Analysis and How to Generate Trading Signals
These levels are calculated a trendlines method.
Upward Trend
In an upward trend the resistance and support will in general head upwards
Upward Trend
Downwards Trend
In a downwards trend the resistance & support will in general head downwards
Downward Trend
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