Support and Resistance is one of the most basic analysis in any type of trading. Though a lot of traders are having trouble on figuring out the correct way to draw support and resistance on a candlestick chart. And today we will take a look at one simple way for beginner to identify support and resistance easily.
Support level is a level that supports the price from falling further down, and therefore a support level should be below candlesticks.
Look for a lowest price at below candlesticks. That is would be the point that you want to create your support level. There shouldn’t be anything sticking out from the support level if the level is set correctly.
Resistance level is a level that resist the price from going further up, and therefore a resistance level should above candlesticks.
Look for a highest price above candlesticks. That is going to be the point for you to create your resistance level. Same as support level, there shouldn’t be anything sticking out if resistance is set at the right place.
Take a look at this video here to find out more: https://youtu.be/oFw-AbUyRlM
Note that the video is explained on binary option platform, though the same technique can be applied to Forex trading as well. If you have any question on support and resistance level, feel free to come and talk with me!
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