What is Support and Resistance in Forex?
One of the simplest and most widely used basic articles of the technical analysis concept is support and resistance levels. Support and resistance levels are a concept that even investors who do not have much information about technical analysis take to hear. It is also referred to as “the place where buyers start to come to the market” or “the place where sellers start to come to the market”. What Support and Resistance is that you need to learn very well.
Support and Resistance
The line drawn from the ceiling dots of the price changes is called the resistance line. The line drawn from the base points of the price changes is called the support line. Resistance and support points are drawn from the top and bottom of the graph. The determination of resistance and support points is crucial in the planning of trading, the anticipation of a possible price change, and a clear picture of the situation on the market. It is going to be very difficult to predict them without learning what support and resistance is.
As the support period increases, investors’ confidence in purchasing from this level increases. With prices coming back to this point, investors are convinced that this level is a good point for buying.
A situation similar to this is anticipated when the market is forced to pass a certain level. These levels, which the market is up against, are called “resistance”. The basic logic is the same as the support concept, only the direction is different. The level of resistance is the point at which many investors, who think that prices (parity, financial instrument) have risen to an extreme, are in decline. Learn exactly what support and resistance is It will not be hard to anticipate the movement of the parity after many tests have failed.