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Forex Support and Resistance

Here is a short course on forex support and resistance. This slide show will show traders how to pick support and resistance levels for breakouts and profit taking when trading the spot forex. Here is a link to our complete course on support and resistance: http://www.forexearlywarning.com/forex-lessons/support-and-resistance

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Forex Support and Resistance

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  1. Support and Resistance The forex market is a support and resistance market, all trends start and end at support and resistance. All reversals and retracements start at support and resistance. Forextrading becomes a lot easier if you are an expert at identifying key areas of forex support and resistance.

  2. Support and Resistance • Take the short term support and resistance (M5 –M15) Time Frames • Compare to the longer term Support or resistance (H4 Time Frame and Larger) • Calculate the difference and this is your pip potential • You can now estimate risk versus reward • Do I want to trade this pair ?

  3. Price Alarms • You can set price alarms on Metatrader or other platforms • The price alarms can be set at short term or longer term support and resistance levels. • You can also set a straddle alarm, which is two price alarms on the same pair, if it is trading in a tight range to monitor for a breakout in either direction.

  4. Resistance Price Breakout Point on the D1 Time Frame

  5. Setting Price Alarms

  6. Price Alarms • If a pair is in a cluster or layers of support or resistance set the alarms outside of the cluster. • When the alarms hit if you are in the main trading session check The ForexHeatmap ®. • Spikes are not significant, areas of support and resistance are, if a pair spikes you can reset your alarm slightly higher or lower.

  7. Support and Resistance • If you set a resistance price alert on the NZD/CHF and the price alarm hits check The Forex Heatmap®, if the heatmap looks like this it is a buy! The trade entry is verified.

  8. Support and Resistance • References are Lesson 10 in our 35 forex lessons and our blog for examples: • http://www.forexearlywarning.com/forex-lessons/support-and-resistance • http://www.forexearlywarning.com/blog/ • Good Trading, Forexearlywarning

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