If you are new to forex trading, you might be wondering what support and resistance are? Support and Resistance are the most talked-words in the forex market.
A better understanding of the support and resistance strategy can help your perfect profitable forex trading journey.
Forex and stock traders use it for technical analysis of the market; even large trading companies and big banks use this to identify the market trends.
We all know the forex market is the game of supply and demand. When the supply and demand meet at the same price point, then the support and resistance levels appear.
If you have a good understanding of the supply and demand, you can catch big moves of the market and not lose the trades’ potential opportunity.
In this article, you can understand everything about the support and resistance, and you can download the top support and resistance indicator for free. Using this support and resistance strategy and indicators, you can make money as a retail trader.
In a nutshell, the support and resistance indicator automatically spot the level, which helps you to identify the market position.
So, where are support and resistance levels?
Support:
We all know that when the supply is more than the demand, the price of the assets usually decreases. Suddenly, supply and demand meet at the same level as the decreasing market, at that point support level appears. That means, the price cannot drop beyond that level because there are not enough buyers at that level of the price point. This is how the support level formed.
Resistance:
On the other hand, when the demand is more strong than support, the price of the assets usually increases. At a certain price point, supply and demand meet. To that exact price point, resistance level forms. At that resistance point, there are enough sellers to meet the buyer. So, the price usually does not up beyond that price point.
How to identify the Support and Resistance level?
There are many ways you can identify the level of support and resistance. Almost all the ways can give you the best results for the technical analysis.
Pivot point
The pivot points can help to identify the level of support and resistance. This indicator usually collects data from the previous candle in the MT4 chart. It analyzes the chart’s low, high, and close price points to find the potential support and resistance level.
S&R indicator
This indicator identifies the levels where the price touches the maximum times. Most of the forex trader uses the maximum touch strategy to analyze the market condition in forex.
Swing Highs and Lows
Swing highs and low is the process of notifying the previous lows and highs of the chart where the price could not breakthrough. This is a very time-consuming method, as you have to identify every level of the currency.
Psychological level
This method is most popular to identify the level of support and resistance. It usually happens when the prices end with multiple 0’s. For example, 1,3400 is a good psychological level of support or resistance.
For whom it’s necessary to identify the support and resistance level
Support and resistance levels help to identify the price level and price movement of the forex market. Almost all the new forex traders require to identify the level of the market to make decisions for each trade.
You can use support or resistance indicator, or you can do it all manually. But the indicator will be useful for new trades as well and experience traders.
Trading with support and resistance level
There is three-way to get into a trade at the support and resistance level.
Level Bounce
Level Breakout
Resist after breakout
Level bounce
When the price bounce at a certain support and resistance level, you can take trades in that price level bounce stop. This easy strategy to get into the trade in the popular strategy for the new trader.
Level breakout
You may hear the word “breakout” almost every day in the forex community Breakout happen when the price break the support or resistance level. This breakout price point is a great opportunity to get into the trade.
Retest after breakout:
We see so many pro traders uses this simple forex strategy to make millions of buck from the forex market.
After the breakout of the support or resistance level, the price retests the breakout point or level, and the price continues to fall or rise to the breakout trend direction.
This breakout strategy’s profitability and accuracy are much higher than the other support and resistance strategies.
When you are trading with any of the support and resistance strategy, make sure you use a regulated and low spread broker like icmarkets for the trade accuracy.
All about support and resistance indicators
Indicators can help you to identify the market condition. You cannot make trade decisions only based on the indicator.
An indicator can only help you with your manual trading of the market. We are sharing 30+ forex and binary indicators, which you can download from the below link.
Make sure you test any forex indicator or forex system to your practice account before going to the real account.
All the indicators you can download are only compatible with the MT4 platform. You can find that all the forex brokers provide the MT4 platform for their clients.
You can download 30+ Support and resistance indicator from here.
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