Simple Forex Strategy using Support Resistance

Simple Forex Strategy using Support Resistance - In trading it is certain that traders recognize support and resistance, to get to know what support and resistance are, we discuss more about what they mean.

Support is the price limit that is located below the price movement, while the resistance is the limit on the price located above the price movement. These support resistance limits have been formed due to traders' own thoughts. Where traders around the world often provide simultaneous responses where they determine that it is an overbought and oversold level.

It can be seen in price quotes on the market, why often prices bounce off each other at the level of support and resistance. This is because this thought continues to occur repeatedly, therefore making the situation on the market is like a straight line that limits the price movement. However, the movement of the price itself can be wherever they want, no one can manage it and limit it.

It's not just a straight line to determine resistance support, but you can also use the trendline. Because it can be pulled straight that at that point prices are often blocked and bounced back. If the line often reflects the price, the stronger the resistance support line.

There is a benefit to studying this support resistance, because this is a basic lesson for traders to apply technical analysis. Therefore many traders are able to gain a lot of profit using only this support resistance strategy. Because of these limits rational and become an ideal position to enter the market.

But if you want to analyze your resistance support to produce maximum profit, traders also have to understand the action and price action, so that traders do not misinterpret the transaction.

For price action at the support level there are two, namely Pullback and Breakout. This pullback has been explained above, where prices often bounce back at the level of resistance support. Breakout itself is a price event that is able to break the support resistance barrier.

So if the price manages to breakout support, then the broken support becomes resistance and the price looks for support below it again. Conversely, if the price breaks the resistance then the broken resistance becomes support and the price looks for the resistance above it again.

That's the tips that I can convey this time about Simple Forex Strategy using Support Resistance. Hopefully useful and good luck.