Ihab Salloum[ad_1]
When it comes to trading on Forex charts nothing is quite as rudimentary and vital to success as the identification and use of support and resistance.
Throughout any trader’s career the proper use of these levels will always be incredibly important, otherwise things can go very wrong very quickly. So taking the time to learn how to use these levels appropriately will create a lot of different trading opportunities for all types of traders. While some forms of support and resistance can be broken rather easily others can hold up for months or even years. Having knowledge of where these levels are after having identified them can provide many opportunities to predict the direction of price action, giving traders the chance to make some serious profits.
Support and resistance levels are identified when price action makes a peak or a low on any charts, whether they 5 minute or 1 day there is the opportunity to identify points of support and resistance. When support or resistance points are identified outside of the channel that has been established throughout the trading week it is usually a safe bet to go ahead and anticipate a bounce at that level. By not properly identifying these levels someone can end up landing them self in some hot water if things should go wrong, and they often do when trading on this indicator alone. While support and resistance are excellent tools that should never be underestimated it is very important to remember that they are best used in combination with other methods.
While every part of the trading landscape should not be taken as gospel, when combined together they can give a trader a real-time perception of the odds. When more than one indicator come together to signal a buy or sell it is time to consider that direction, but waiting too long for the stars to align can result in missing the boat. So make sure that everything is in place for you to properly gauge what your chances are before you move forward, otherwise things can become very difficult very quickly. Other indicators such as pivot points and Fibonacci levels can make a huge difference when attempting to figure out what is possible, and this keeps everything at a bird’s eye view for a trader. While having all of your tools is a vital step in becoming a successful trader there is also something to be said for knowing how and when to combine them.
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