Support and resistance are key concepts in forex trading. Support is a level where prices find difficulty in falling below, while resistance is a level where prices find difficulty in rising above. To maximize trading success, it is important to identify and trade in accordance with these levels. Guidelines for trading support and resistance include:
1) Identify the key levels of support and resistance,
2) Utilize a combination of technical indicators to confirm the levels,
3) Place stops and take profits at levels of support and resistance,
4) Look for breakouts to take advantage of momentum,
5) Enter positions only after the price has broken through a level of resistance, 6) Be patient and wait for the price to reach the entry level. By following these guidelines, traders can increase their chances of success in the forex markets.
