Elementary Guide
What are Support and Resistance Level?
Support and the Resistance level of one of the most important terms to understand the chart pattern in Forex Trading. One of the best techniques to identify target price is to recognize the support and resistance points. These points are used to attract maximum amount of buyers and sellers. Support and Resistance points on charts can be identified with technical indicators like Trend Lines and Moving Averages.
The Support Level
The support level indicates when the falling price stops and changes the direction then begins to rise. The support level will be rise as the floor which will support and holding the price.
In simple terms Support Level is the price somewhere on the chart where traders can expect maximum demand in terms of buying. So the level is often look out as a trigger point to buy.
The Resistance Level
The resistance level is where the currency price rising and stop, change the direction that will begin to fall. Resistance shows the ceiling that will push the prices from rising higher.
In simple terms resistance level is the price somewhere on the chart where traders can expect maximum supply in terms of selling. The major point is that the resistance level is always above the current market price.
