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Support & Resistance Trading – A Concept or a Strategy or both
Tuesday, January 30, 2018
Expert: Barry Norman Hosted by: TradeFred.com- Forex
- Commodities
- Technical Analysis
- Intermediate
Support and resistance levels provide forex traders with a valuable tool they can use in their trading. By learning about these levels, investors can obtain a better understanding of what is going on in the markets. Support and resistance works well for forex, commodities and stocks markets. They also work in short term time frames and long term investment.
Support levels denote prices that a currency will not likely fall below, while resistance levels indicate prices the currency will probably not exceed. By analyzing these key levels, investors can more accurately predict whether a current trend will keep going or, alternatively, reverse. Armed with this information, a trader can potentially find a price point to enter a position, or close a position, and place a stop or a limit.
To use support and resistance effectively we first need to understand how asset prices typically move, so we can then interpret support and resistance from that framework. There are also different types of support and resistance, such as minor and major/strong. We expect minor levels to be broken, while strong levels are more likely to hold and cause the price to move in the other direction. With this information we can start making better decisions based on support and resistance.
Barry Norman
The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.
Support levels denote prices that a currency will not likely fall below, while resistance levels indicate prices the currency will probably not exceed. By analyzing these key levels, investors can more accurately predict whether a current trend will keep going or, alternatively, reverse. Armed with this information, a trader can potentially find a price point to enter a position, or close a position, and place a stop or a limit.
To use support and resistance effectively we first need to understand how asset prices typically move, so we can then interpret support and resistance from that framework. There are also different types of support and resistance, such as minor and major/strong. We expect minor levels to be broken, while strong levels are more likely to hold and cause the price to move in the other direction. With this information we can start making better decisions based on support and resistance.
Barry Norman
The Director of Investors Trading Academy as well as a published author and educator. Barry brings with him over 35 years of financial market knowledge and experience. He holds an MBA in Finance and Economics from UCLA and an undergraduate degree in Economics from the University of Maryland. Barry was award the title of “Best Education in Europe” by Global Banking & Finance. Barry is also a presenter for the MoneyShow and many well-known news sources.