As part of articles series about Technical Analysis in Forex ,I'll explain today support and resistance levels
: I Talked in previous articles about
Support and Resistance
Support and Resistance considered from most important terms that used a lot in the technical analysis and the most important to expect the next trend ,so we must take a look on the basics and learn support and resistance in order to how and why the trend reverses and how the trend continues its trend whether up or down
Support and Resistance
Look to the simple diagram above , as you see it's look a like zigzag shape tends to bullish (that mean is the market is rising) , but there's what's called resistance level which makes the market bounces around the bottom ,this is cause of the resistance while the market continues rising again because there's area below receives the pressures of the resistance and pushing the price around rising and this because of support level
That way the support and resistance consist all the time with the market fluctuations , so remember that the support pushing the price to the up and the resistance pushing the price to the down
Firstly : Support Line
Support Line is a line we can draw it by connecting between the lowest points that price reaches with each other , this line makes area called lowest levels area on the chart
Many traders decide to buy where support levels but I think that the market must test support levels before the buying signals appear which mostly appear after the second or third test fot the support line
But if the support line broken around the down and the trend says that the support has broken (that mean the market become in bearish ) ,here we can say that the market will searches about the new lowest price to make new support level
Secondly : Resistance Line
Resistance Line is a line we can draw it by connecting between the highest points that price reaches with each other , this line makes area called highest levels area on the chart
Many traders decide to sell where resistance levels but I think that the market must test support levels before the selling signals appear which mostly appear after the second or third test fot the resistance line
But if the resistance line broken arround the up and the trend says that the resistance has broken (that mean the market become in bullish) ,here we can say that the market will searches about the new highest price to make new resistance level
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