Your question is almost identical to this question, which I answered on a previous thread:
Exactly. If your broker offers you 100:1 leverage, and you take that to mean that you can place trades which are 100 times the actual size of your account, then you will be in very big trouble, very quickly.
On the other hand, if you set a sensible limit on the amount of risk you are willing to take on each trade, and stick to your limit, then the leverage you actually use will take care of itself…
It might help you to read that entire thread — 301 Moved Permanently
There isn’t one short, simple answer to that question.
Support and resistance levels are visual representations of price levels where buying pressure has overwhelmed selling pressure, or vice versa, sometime in the past. The next time price approaches one of those S/R levels, it will likely (but, not always) react in some way.
Price may simply pause, and then continue on its way. It may be stopped dead, and then hammer away at that level, trying to break through. It may be abruptly turned back in the other direction. Or, it may blow past that S/R level as if it weren’t even there.
S/R levels not only present obstacles to price, they often tend to attract price. That is, price tends to approach and test nearby S/R levels. In addition, market-makers are often able to drive price through weaker S/R levels, temporarily penetrating those levels by 5-10 pips in order to pick off stops which are crowded too close to those weak levels. Only the strongest S/R levels can repel a stop-hunting attack.
Determining what is likely to happen at particular S/R levels is more of an art, than a science. But, those traders who can master the art acquire a powerful tool.
S/R levels can occur anywhere on a chart. They can be spaced close to one another, or far apart. But always, they represent potential price targets [B]and[/B] potential obstacles to price (contradictory as that sounds). And you need to take account of them.
When you determine an entry price for a potential trade, your next step should be to determine what S/R levels exist above and below your chosen entry. A particular S/R level may be helpful to you, or it may be a problem.
When you are looking for a likely price at which to place your stop-loss, you need to pay close attention to the S/R levels on that side of your entry price. And, when you are looking for a likely profit target for your trade, you need to carefully consider the S/R levels on the other side of your entry price.
Part of the “art” of using S/R levels profitably is to be able to judge the strength of a particular level. If you can determine levels which are likely to offer strong support or strong resistance, your chart may be showing you exactly where to place your SL and your TP.
On the other hand, if the S/R levels on your chart indicate (1) that price is likely to retrace too far in the negative direction, or (2) that price has too little running room in the positive direction — then, you might conclude that S/R levels are telling you to abandon this trade, and look for a better one.