dhanpreet Posted October 23, 2010 Share Posted October 23, 2010 Knowing the major support and resistance levels is very important in forex trading and the best way to do this is through the use of several forex support and resistance indicators. Most of you have heard of major swing points as support and resistance and do not know anything about indicators that can provide you with the same information. Therefore in this article, I will be sharing with you some of the best forex support and resistance indicators that I have used and proven to be pretty powerful. 1) Fibonacci Indicator – I guess most of you have heard of Fibonacci indicator, it is a powerful tool that is able to help you predict where the market might retrace to and then revert back to its original trend. The Fibonacci is made up of retracement and extension, the important retracement support and resistance levels are 0.382, 0.500 and 0.618 and you will usually find the market respecting them. As the forex market is moving in waves of retracement and extension, you can then make use of these levels to help you to enter a trade in the direction of the trend. Another powerful feature of the Fibonacci is its ability to predict the likely extension and this information can be used to help you in your exit. 2) Forex Pivot Point – The pivot point is a tool that is commonly used by those big dog traders and thus it is a very reliable support and resistance level. Try plotting pivot point on your chart and you will see how many times the market get repelled by it or how many times the market move tremendously after breaking through it. Personally, I always plot a daily point point on my 15 minutes charts. In fact, you can plot an hourly pivot or even weekly pivot depending on your preference. I often use the pivot points as entry and exit targets in my trading and you can also do the same thing. 3) Bollinger Bands Indicator – Other than the above 2 indicators, you can also make use of the Bollinger bands upper and lower bands as support and resistance. Similarly, you will find the market respecting the bands as they are often repelled by it. here are some traders who have trading plan that simply trade the repulsion of the bands. This is especially effective when you are in a range. When you are in a ranging market, the price will always fluctuate up and down. When you see the price hitting the upper band, you can enter a SHORT trade (SELL) to profit from the repulsion. Similarly, you can enter a LONG trade (BUY) when you see the price hitting the lower bands. The above are 3 effective forex support and resistance indicators that you should use in your trading as they are able to help you in your entry and exit. However you have to try each of them out on your demo account before you plunge into live account. Spend sometime to practice with them and make sure that they are able to fit into your trading plan. Quote Link to comment Share on other sites More sharing options...
omarelalfy Posted October 27, 2010 Share Posted October 27, 2010 Personally, I always plot a daily point point on my 15 minutes charts. In fact, you can plot an hourly pivot or even weekly pivot depending on your preference. I often use the pivot points as entry and exit targets in my trading and you can also do the same thing. Quote Link to comment Share on other sites More sharing options...
standart Posted November 19, 2010 Share Posted November 19, 2010 trading based support and resistance basically is long trading, may be the price will touch the opposite area in 2-4 days, depend on market volatility. but it could be reach in few hours only. this trading style is benefited than other trading style but we should not use more than 20% our deposit money. by the way, thanks for the information. I am still learning about fibonacci and pivot, luckily I found it thread. Quote Link to comment Share on other sites More sharing options...
indieover Posted January 6, 2011 Share Posted January 6, 2011 yes it is important to find the support and resistance on the chart. but it seems that not every body can get same support and resistance on the same chart. but knowing the resistance and support is important to know when to make an entry. Quote Link to comment Share on other sites More sharing options...
boniez Posted January 22, 2011 Share Posted January 22, 2011 yes it is important to find the support and resistance on the chart. but it seems that not every body can get same support and resistance on the same chart. but knowing the resistance and support is important to know when to make an entry. yes, even i never think as you, actually we can share the support and ressistance point by the the other trader, but its consume a lot of time if you dont try by your self. my advice is to use bolinger band indicator Quote Link to comment Share on other sites More sharing options...
chuna1985 Posted March 30, 2011 Share Posted March 30, 2011 Thanks for your lecture, it is good enough. I tried to learn the use of this support and resistance level but i could not. I now visit www.fxstreet.com and take their support and resistance that they place for free in their site. Now it is clearer for me. Thanks Quote Link to comment Share on other sites More sharing options...
standart Posted April 26, 2011 Share Posted April 26, 2011 yes, even i never think as you, actually we can share the support and ressistance point by the the other trader, but its consume a lot of time if you dont try by your self. my advice is to use bolinger band indicator Bolinger band is very poweful to determine support and resistance if market sideways. but can't used to determine if the price break the previous support or resistance spot. more good if add 2 cross of MA line as additional indicator. Quote Link to comment Share on other sites More sharing options...
boniez Posted May 10, 2011 Share Posted May 10, 2011 Bolinger band is very poweful to determine support and resistance if market sideways. but can't used to determine if the price break the previous support or resistance spot. more good if add 2 cross of MA line as additional indicator. Bolinger band line is suitable to determine support and resistance, but I think it is too flexible, so sometimes there are up past the upper or lower band. till now I still prefer using fibonnaci line to determine support and resistance, which i think more reliable regard teh support or ressistance point Quote Link to comment Share on other sites More sharing options...
standart Posted June 17, 2011 Share Posted June 17, 2011 @boniez I get some good information how to use bollinger band and basically this indicator designed to trading in sideways market only. bollinger band recognize well the price range between support and resistance in sideways market. but this indicator not work if market trending. Quote Link to comment Share on other sites More sharing options...
boniez Posted September 13, 2011 Share Posted September 13, 2011 @boniez I get some good information how to use bollinger band and basically this indicator designed to trading in sideways market only. bollinger band recognize well the price range between support and resistance in sideways market. but this indicator not work if market trending. if you study the theory of BB_MA, then I'm sure you'll find out just how powerful this band Bolinger in determining the boundaries of dynamic price movement than the pivot Quote Link to comment Share on other sites More sharing options...
budado Posted December 6, 2011 Share Posted December 6, 2011 if you study the theory of BB_MA, then I'm sure you'll find out just how powerful this band Bolinger in determining the boundaries of dynamic price movement than the pivot Can you elaborate this theory of BB_MA? Because I never heard this theory before. But I know bollinger bands. Anyway I don't think bollinger bands will going to replace pivot. as pivot is the simplest way of finding the average and the pattern of movements. In fact the resistance and support level are all base in pivot line. Without pivot their will be no resistance level and no support level. Quote Link to comment Share on other sites More sharing options...
rexway Posted January 29, 2012 Share Posted January 29, 2012 Taking a Range like were market closes and were market Open,Draw line on the Top call major resistance,and Down Major suport,when a market breaks these Line place your order,this is also another simple way to take suport and resistance. Quote Link to comment Share on other sites More sharing options...
ganthiraj Posted June 20, 2012 Share Posted June 20, 2012 I know about pivot but how to add fibonacci indicator in MT4 trading platform, maybe you know the way. because I want to add fibonacci indicator in my MT4 traiding platform. anyone know about that? thanks for answer it. Quote Link to comment Share on other sites More sharing options...
surya77 Posted December 2, 2014 Share Posted December 2, 2014 Term support in forex trading refers to the area or a certain price level which is the lower limit of the movement of the price / price. Price / price tend to be confined and difficult to move down through the area. Quote Link to comment Share on other sites More sharing options...
Tboy22 Posted June 18, 2015 Share Posted June 18, 2015 Well I personally think it is good for a trader to learn how to spot a support and resistance point on a chart and there are different techniques used to do so some are pivot point fibonacci retracement and price by volume chart and also indicator like volume should be used to determined valuable resistance and support in the chart Quote Link to comment Share on other sites More sharing options...
kim Posted July 28, 2015 Share Posted July 28, 2015 I draw support and resistance in my chart manually. I don't think so that an indicator can give you exact and good support/resistance levels as it draws them after some calculation. Whereas as an experienced trader you can draw them more perfectly. Quote Link to comment Share on other sites More sharing options...
omar-profits Posted March 27, 2016 Share Posted March 27, 2016 personally I use zigzag in indicate the support and resistance points, it is a very useful indicator where you can find the strong points to go buy or sell. but you can't use zigzag only, I think zigzag with trend is a very profitable strategy. Quote Link to comment Share on other sites More sharing options...
tray22 Posted June 8, 2016 Share Posted June 8, 2016 Support and resistant are the perfect way which we can use to predict the trend of the market yes the trend of the market can be predicted using the support and resistant of the forex market which is true but the problem is always how to draw it Quote Link to comment Share on other sites More sharing options...
adamsmiths Posted August 5, 2016 Share Posted August 5, 2016 The Fibonacci indicator tool is the best. Quote Link to comment Share on other sites More sharing options...
catch Posted September 17, 2016 Share Posted September 17, 2016 thanks Quote Link to comment Share on other sites More sharing options...
Ginadaf Posted December 3, 2018 Share Posted December 3, 2018 Dear support, has the indicator been added? If yes, please, tell me, how is it named? Quote Link to comment Share on other sites More sharing options...
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