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Support and resistance levels in trading


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People consider the importance of Support and resistance levels as the key to profitable Forex trading, but some claims exist to best identify them. Moving averages, pivot points, and other derived indicators usually serve as a level of effective support and resistance. But there is no basis for this. It is better to research about those levels. That’s why I am learning from Eurotrader educational resources.
 

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A key concept of technical analysis is that when a resistance or support level is broken, its role is reversed. If the price falls below a support level, that level will become resistance. If the price rises above a resistance level, it will often become support.

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On 4/30/2021 at 12:02 AM, bearhugs said:

A key concept of technical analysis is that when a resistance or support level is broken, its role is reversed. If the price falls below a support level, that level will become resistance. If the price rises above a resistance level, it will often become support.

When we are trading we will need to manage our trades and use the correct Support and Resistance levels.

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