ihi im new here i want to know about support and resistance
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Welcome!
There’s some very helpful info here: https://forums.babypips.com/t/my-price-action-trading-strategy/582002/1047?u=mattymoney
@candlestick2, great resource linked here by @MattyMoney to a post by @Alg626. You’ll be wiser for reading it.
hi, you can learn support and resistance from babypips section. I just wanna add something to keep in mind, each time frame will have different support and resistance level so you can’t do 1 for all, those levels will also change over time with market movement so once the price break a support or resistance level you will need to redraw a new one.
Plus for better understanding take some time to watch videos and practice marking the S and R on charts
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Hello mate, welcome to babypips. Support and resistance is a big part of forex trading. Support is the level where the price finds support and doesn’t go lower any further. Resistance is the opposite; it’s the level where the price finds resistance and bounces back. You can use support and resistance to find good entry and exit points in your trades. All the best
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I am practicing marking these trends lines on charts. I am doubtful on how to mark the zones, I means how you mark the areas?
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You can understand this from this section better: What is Support and Resistance? - BabyPips.com
market trades between these zones and test it on regular pattern and if trend breaks these zones then there is need to find new levels to get the next support and resistance.
I believe that support and resistance levels are among the most accurate indicators in trading. Basically, these levels depict the highs and lows of the trends. Such points have tendency to repeat themselves over the time, they at least make some frames and limitations so that the traders will find it easy to predict the prices.
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The concepts of trading level support and resistance are undoubtedly two of the most highly discussed attributes of technical analysis. Part of analyzing chart patterns, these terms are used by traders to refer to price levels on charts that tend to act as barriers, preventing the price of an asset from getting pushed in a certain direction. Support is a price level where a downtrend can be expected to pause due to a concentration of demand or buying interest. Meanwhile, resistance zones arise due to selling interest when prices have increased. Guess that’s all for you to know about support/resistance levels.
its a good information with so many logic , got some fine lines.
Support is a level in the market chart which consistently shows an upward bounce whenever the price touches the level. Similarly, resistance is also a level but it shows consistent downward bounce whenever the price touches this level. Both support and resistance provides traders with an ability to successfully execute their trades.
Best resource to learn, would suggest practicing on demo first.
I will tell you my opinion on support and resistance…
Everyone knows what’s the idea of support and resistance… the concept is pretty easy… price goes up and down, and there are some zones that are not easily broken. You will see in your charts that price has bounced from that zone a few times…
So that is the easy part. Now the useful part. Many traders look at support and resistance the wrong way. They see the price break a resistance, and immediately go long (buy). But then what actually happens is that price goes down. Why? Because that’s exactly the price institutions consider “expensive”, and all the sell orders are waiting there, just above the resistance, where all retailers are buying and the big money dumps everything on them.
So my advice… be very patient when trading support and resistance. Wait to see not only if the price breaks. You need to look for additional confirmations… for example the current candle closes above the zone (the higher timeframe, the stronger the signal) Also you can wait for break and retest/pullback, and see if the candle closes above the broken resistance.
The key is always patience. Yes, you may miss some trades if price just smashes through the zone and goes to the next, but in my experience, this is just less probable… Normally there is enough time to get a better confirmation.
Support and Resistance breaks is where all the FOMO happens!
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Support and resistance may be the level where price bounced multiple times. It can also be last significant low/high, ie. level which must be broken for price to change direction (or decide on direction).
averied shared very good advice to not trade breaks blindly.
Below AUDUSD on D1 chart where price was respecting the levels. Price must break one of these levels to travel up or down. So I just wait until price reach (or break) one of these levels and how it will behave.
On H1 price reached the level and it has been respected then broken. After breaking it became great support. I’ve got to chart only after third retest and took trade marked on chart. You can see that later were other cases where price nicely broke the level and retested.
So basically I will draw lines which I believe are nearest important levels, which need to be broken for price to travel in any direction. Then I wait until price breaks one of levels (alerts are handy). Once price broken level, I will switch to lower timeframe and wait for retest, anything that will show supply or demand coming in at the level (long wicks, engulfing pattern, etc.), then I set position with Stop Loss below the level and Take Profit somewhere between 1:1-1:2. This is not holy grail, but I see it working nicely from M5 to D1 timeframes (beware spread on M5 as price needs to travel huge distances to overcome spread on such short timeframe chart)