Trade Forex Successfully with
Support and Resistance Strategies
Improve Your Forex Success with Valuable Techniques.
The Depth of Support and
The Depth and Breadth of Support and Resistance
Support and resistance zones are visible in many different markets and time frames, and do not just relate to one particular chart or pair. Below is an example of the EUR/USD on a 4 hour chart:
The 1.5820 zone is a clear area of resistance for the pair. You can mark three specific times that the pair attempted to break through this level only to fail. Since this is such a strong resistance line, you can also expect it to provide strong support if the pair eventually breaks through. Below you can see this is the case as the pair finds support from the level that was previously a resistance area.
Another important idea about support and resistance zones is that they create imprints, or memories, on currency pairs. A strong support and resistance line is something that will stay with a pair for a long time and chances are the next time the pair approaches it, whether it be in a week or a year, the pair will pause before deciding which way to move.