This is one of the most widely used concepts in FOREX TRADING. Surprisingly,
everyone seems to have their own idea on how you should measure FOREX support
and resistance.
Let’s see the basics first.
Put your eye before the diagram above. As you visualize, this zigzag pattern is making its way up (bull market). If the FOREX market moves up and then pulls back, the highest point reached before it pulled back is now resistance.
As the market continues up again, the lowest point reached before it started back is now support. In this way, resistance and support are spontaneously formed as the FOREX market oscillates over time. The reverse is correct for the downtrend.
Let’s see the basics first.
Put your eye before the diagram above. As you visualize, this zigzag pattern is making its way up (bull market). If the FOREX market moves up and then pulls back, the highest point reached before it pulled back is now resistance.
As the market continues up again, the lowest point reached before it started back is now support. In this way, resistance and support are spontaneously formed as the FOREX market oscillates over time. The reverse is correct for the downtrend.
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