Monday, December 13, 2010

Forex : Support & Resistance

Price action provides all the clues.

Trading is finding & executing trades setups around the area of support & resistance.

The more factors that converge through a single boundary, the greater the probability it will support or resist price change.

The most important levels:
Look to buy at support when the nearest resistance is far above.
Look to sell at resistance when the nearest support is far below.

Identifying support & resistance is one of the method for entry.

To identify Triggering Point:

  1. Support & resistance analysis
  2. Pattern recognition
  3. Evaluation of Risk : Reward
  4. All chart time frame has the same trend.

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