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Support and resistance is one of the most common methodologies used for trading. It is used for a variety of different asset classes and in this article, I'm going to share how this concept can be applied to accurately pick areas from which to trade in the markets.
First I'll start with some definitions.
This is a level that we expect price to reach but not break beyond. Notice I said "break" and not "close". Price can close beyond support and the level remain intact. I will explain in more detail later. Essentially support acts as the floor for price and when price reaches it, we do not expect it to move much lower if it holds. We look to buy at support.
If support is the floor then resistance is the ceiling. We expect price to reach this level but not break higher. We would look to sell from resistance.
Finding The Levels
Much like supply and demand which I've written about before, we are looking to trade away from support and resistance. We only want to trade the best setups so that means learning to identify major support and resistance levels. Minor support and resistance levels will still often produce a reaction but to have the odds in our favour as much a…
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AAAnya avatar
AAAnya 16 June


Yonggi7 avatar
Yonggi7 20 June

Well done!

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Many traders struggle to make it in Forex and more than 50% eventually give up. But Forex requires a lot of patience and perseverance. Most people are usually profitable in their first days of trading Forex because they are able to adhere to the rules and their knowledge is still fresh. But in Forex to make it, its best if you adhere to the rules. Sometimes the rules may not be enough because of a wrong strategy. In this article i will discuss a way in which one may improve their existing strategy to make it profitable.

Technical analysis
1. Support and Resistance

This is one of the most important tools that every trader needs to know how to use. Support and resistance lines help provide the best entries and exits for a trader. They also help remove any bias from the market and also facilitate both counter trading and trading along with the trend. Of all tools i think support and resistance can really make a difference in your trading if combined with your existing strategy.

2.Pivot points

Support and resistance lines are subjective. The skill of drawing them accurately may take time to develop and also drawing them largely depends on one's Forex knowledge. If you are one of the …
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Alexander22 avatar

good article

Vlad73 avatar
Vlad73 19 Oct.

well done

Yonggi7 avatar
Yonggi7 28 Oct.

Well done!

TelisHellano avatar

well done,good writing

klintons avatar
klintons 13 Feb.

Gut Job

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Before the RBNZ
The NZD started off the week strong against the USD despite the NFP jobs report that came in with over 70K above the expected. All eyes were on the Reserve Bank of New Zealand (RBNZ) and more importantly the Top Boss Graeme Wheeler as to whether the RBNZ would maintain its rates or follow the BOE, RBA, and BOJ which had adjusted their interest rates in the week earlier.
All traders were expecting a rate cut due to;
  • The decrease in the oil prices that weren’t enough to push the inflation higher as expected by the RBNZ estimates in June.
  • The expectations of the FED rate hike didn’t drag NZD/USD lower but rather strengthened it.
  • The RBNZ also tightened its mortgage lending restrictions as a possible indication of rate cut.

Furthermore RBNZ Chieftain Wheeler said in the June RBNZ statement that:
At this stage it seems likely that further policy easing will be required to ensure that future inflation settles near the middle of the target range

After the RBNZ
The RBNZ cut its cash rate by 0.25% to a record low 2.0%.
CHART 1- The RBNZ interest rate since April 1st 2015 to July 1st 2016
Contrary to what experts thought, the NZD/USD shoot up by over 130pips within 30minut…
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fx211pips avatar

superb article

geoma avatar
geoma 16 Sep.

Very interesting, keep up the good work.

Brezhnyulia avatar

you are really great  in it

paglu avatar
paglu 4 Oct.

nice article



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INTRODUCTION The plethora of indicators, analytical tools, expert analysis and all manner of information available to today’s trader does sometimes overwhelm even the most cerebral of currency traders. Many traders like to apply a large number of indicators in order to identify the perfect entry or exit signal. Since such a signal does not exist, confusion then reigns with the attendant consequence of unnecessary losses. Therefore, the trader is well advised to concentrate on a small number of indicators and trading tools. I will refer to such trading aids as degrees or dimensions of freedom (DOF). This article describes a trading system with three DOF where the simple moving average is the principal player. SYSTEM DESCRIPTION The trading system is applicable to both trending and ranging markets. It comprises three degrees of freedom, i.e. simple moving average (SMA), support/resistance levels and Fundamental event risk. 21 period SMA The 21 period on daily charts approximates a month of trading days. It is also a Fibonacci number. Such numbers have rendered themselves very useful in growth studies, cycle analysis, physical phenomena, financial markets, etc. The SMA is preferred …
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captain avatar
captain 14 Sep.

With regard to degrees or dimensions of freedom, it is important to note that in the physical world, we see best in terms of three dimensions, i.e. length, breadth and height. Three dimensional figures such as cubes are more stable than two dimensional figures, such as squares.

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Have you ever realized how best the indicator is? Have you ever noticed sometimes how precisely the price follows the indicator and not the other way, that is the reason it is called as leading indicator, is it not? and I have seen many amateur traders, they will not trust that indicator including me when I was started trading. If one learning from Forex training center, the tutor must have told and emphasized the importance of the indicator. It is the one way to develop trust in it, if not by experience. Otherwise the newbie may ignore it and if one is very unfortunate, one may not come to know till their end of the life. An investor Oddmund Grotte shares his experience like he said “I have been investing and trading for about 16 years, but not until now have I had a look at it.....I must admit I had basically no clue what this really is  ” The indicator what I am talking is a very simple and well known PIVOT POINT (PP) LINES. Who found it? Prior to online trading and instant chart analysis like we do now, those days in the early 1970’s traders were fighting in the pit to hear their signals and acted upon it. The shouting and confusion in sending signal was overwhelming and rememb…
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tulasi avatar
tulasi 5 June

good one,you could have added some stats,

wassimalg avatar

One of the best article and top level strategy

LinnuxFX avatar
LinnuxFX 11 June

Are you using MT4? See my article JForex vs MT4 and leave a comment... good luck

cameronben avatar
cameronben 20 June

best article

doctortyby avatar
doctortyby 27 June

Pivot Points are very useful in Technical analysis, but they should be used together with other tools

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