I am now trying to start trade in forex. Please share me some effective points and facts to clearly find Support zone and resistance zone according the market?
I really appreciate for your advise. Peace !!!
Start here
The free School here has 6 specific lessons on support and resistance -
- What is Support and Resistance?
- Trend Lines
- Trend Channels
- How to Trade Support and Resistance
- Psychological Levels
- Summary: Trading Support and Resistance
The relevant sections start here (click the green link below) -
Support and resistance levels or zones even, don’t have a highly reliable reputation. The picture is unclear partly because there are multiple ways to define these levels, making objective assessment itself unreliable.
Perhaps they work a little better as exit warning signals but you might find other ways of finding exit price levels just as good (or bad) - such as Fibonacci,1000, 500 or even 100 pip levels etc.
The best method to use is one that your strategy works well with and which it must use.
Solid start Look for areas where price bounces multiple times, check higher timeframes, and use trendlines for extra confirmation.
@Miss.Ara are you looking for those because they’re stronger support/resistance, or weaker?
Support/Resistance is formed when there is an imbalance of orders.
Order Imbalances can be caused by large bid/ask levels by international companies, banks, sovereign wealth/hedge funds, use of option levels (vanilla & exotic), or lack of liquidity beyond the level.
Order information is rarely given out for free as front-runners cost profits. Banks/Funds exchange this information to help lower their transaction costs, determine current market liquidity so their clients can transact with minimal slippage.
well this may be too general and not specific but the price around which you see a lot of shadows (wicks) is a potential support/resistance zone!