How to Analyze Forex Charts 1
Support and Resistance:
If you understand the support and resistance, you will understand how the Forex market works.This method will help you open the trade at the right time and get you out of the trade at the right time.Different levels of support and resistance can be found.Once the market support level breaks, the price will generally decrease further and the next resistance level will then act as support.Once the market resistance level breaks, the price usually increases and the next support level then acts as a resistance.Therefore, the support should be sealed when braking and the resistance should be sealed when braking.Suppose the market is on the uptrend. Resistance is the price that starts to decline again after the market has increased.That is, the highest point is the resistance level after rising.Again the minimum goes down, the point is the support level.The same is true if the market is in downtrend.
There is no right answer to this question. However, some say that if the price is close to the previous level, then it can be understood that support and resistance breaks. But that is not always the case. See the chart below. The price has gone down a lot since 1.4700. But later it has risen again. But the support didn’t actually break. It is still unchanged and much stronger. Now if you close your trade and sell the cell trade, you would probably be losers. If you practice regularly, you can easily determine support and resistance. Get alot of tutorial about technical analysis from here. You can learn from us by joining here.
