One
of the most basic things a trader needs to learn inside out is how to
determine and then use Support & Resistance to plan and execute
their trades.
When we want to cross a
road safely we look to our left and right and the order we do that
depends on what side of the road traffic drives on. When trying to plan
and execute trades we need to know where key levels of support and
resistance are to make sure we don’t get run over by the market. We are
trading the Right Hand Edge of the charts and are not 100% sure what
price will do next, so before we look right we must always:
LOOK LEFT
on our charts and
identify past significant horizontal support and resistance and trend
lines in the timeframes which could impact upon our intended trade.
Once that is done and marked up on our charts then and only then should
we look right, and have a more informed view of likely price action and
hopefully stay safe when taking our intended trades.
Top Forex Trading Tip: Often past
horizontal support and resistance will create small zones where price
may react in the future, also where the bodies of candles actually
close can be key levels.
