A support and resistance can be a field of money for you, if you really know where it is. Yes, like digging a treasure that contains a lot of expensive gold bullion. But of course to know the location of treasure, you will need a map. As in the show Dora The Explorer, we need a map.
Now we look at when a trend is moving, for example an uptrend. Is there a trend that never ends? Of course not. Any increase will reach the peak point and then stopped rising and continues to decline. Conversely, when the price falls, there will be a time when the decline stopped and prices rise again.
The points dismissal of an uptrend and downtrend is called the support and resistance. Lower limit of the price movement after a downtrend is called support. Meanwhile, the upper limit of the price movement after the uptrend is called resistance.
Now we look at when a trend is moving, for example an uptrend. Is there a trend that never ends? Of course not. Any increase will reach the peak point and then stopped rising and continues to decline. Conversely, when the price falls, there will be a time when the decline stopped and prices rise again.
The points dismissal of an uptrend and downtrend is called the support and resistance. Lower limit of the price movement after a downtrend is called support. Meanwhile, the upper limit of the price movement after the uptrend is called resistance.
Both of them are very important. Just think if you buy at the point of support and sell at the point of resistance, you will be smiling broadly. No, not only that .. you'll laugh while dancing the hula hoop dance on your mattress with Hawaiian dancers who suddenly fell from the sky. And think again, you do not know about support and resistance points, you follow the short-lived trend. Heg, it certainly will not make you sleep soundly. maybe you will blame the trend and put the dynamite on your computer until you hear the sound of small explosion. KABOOM..!! lol lol. If you know the support and resistance point, you can avoiding the risk of Forex.
Many ways to determine a point of support and resistance. Some traders use indicators, Fibonacci sequence, or a history of past price movements. Some of these indicators will be a treasure map for you. The good news is, we will discuss in the next chapter.
Support and resistance is actually a reflection of the psychological point that is recognized by market participants simultaneously. As we all know that the price movement is basically determined by the laws of demand and supply. When demand rises and supply remains, then the currency will strengthen. In the meantime, if supply rises and demand remains, then the currency will weaken because many supply in circulation.
Is it possible support and resistance points pierced by the price movement?
Of course it is. For example, the point of resistance has been pierced by the price movement, it would appear the point of new resistance and old resistance turn into point of support. Way of knowing whether the price will break or not, you have to learn several instruments of technical analysis in the next chapter.
Many ways to determine a point of support and resistance. Some traders use indicators, Fibonacci sequence, or a history of past price movements. Some of these indicators will be a treasure map for you. The good news is, we will discuss in the next chapter.
Support and resistance is actually a reflection of the psychological point that is recognized by market participants simultaneously. As we all know that the price movement is basically determined by the laws of demand and supply. When demand rises and supply remains, then the currency will strengthen. In the meantime, if supply rises and demand remains, then the currency will weaken because many supply in circulation.
Is it possible support and resistance points pierced by the price movement?
Of course it is. For example, the point of resistance has been pierced by the price movement, it would appear the point of new resistance and old resistance turn into point of support. Way of knowing whether the price will break or not, you have to learn several instruments of technical analysis in the next chapter.
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