Welcome to the Forex Warrior Podcast! This week’s show is a special video podcast. Today, Jason talks about Support and Resistance Forex Trading and what this means to you as a Forex trader.
You can download the episode as an audio version but this episode is best viewed visually.
Support and resistance has been around a long time. In this episode, Jason explains it, the history of it and what it can mean for your trading. This episode talks about using this technique to improve your forex trading game with a better analysis of the charts.
A lot of people understand support and resistance but they don’t understand the intricacies within it and how important it can be to being a successful longterm consistent and profitable trader.
Support and Resistance Defined
What is it? Support is defined as the level on a trading chart that acts as a barrier or floor in the price. It is an area that price has had difficulty falling below or moving lower than in the past.
Resistance is the opposite of support. Resistance is a level on a trading chart that acts as a barrier or ceiling in price. It is an area that price has had a difficulty in rising above or breaking out higher than in the past.
An Example of Support
It’s important to see the visual at this point in Jason’s example of the Austrailian US Dollar one-day time frame. You can see that the support area does not have to be aligned. It can actually be a zone that proves to be support over time. Even though it’s not an exact line, it’s still very important as far as support is concerned.
To hear the rest of Jason’s tips, download and listen to Support and Resistance Forex Trading!