Trading With Support And Resistance

 

The terms support and resistance can be a little confusing to some traders.  Many people instantly think of the wrong thing.  For example, I bet many traders instantly thought of those generic indicators that you put on your charts.  Those indicators that supposedly put those pivot points, S1, S2, S3, R1, R2, R3 automatically on your charts for you.

This is not what I call support and resistance.  All they are, are just basic, static formulas.

Sure, occasionally the price will hit these areas and bounce off of it.  But for the most part, it is purely coincidental.

Quite frankly, if you want to trade support and resistance, you are going to have to be able to see it for yourself.

Follow these forex trading tips. This process begins by getting rid of every single indicator that you are used to using. This must feel like a giant leap of faith to many traders, but trust me, it's an important step that you have to take.

Don't feel bad, if you have a difficult time with this.  It's only natural.  After all, you are most likely stepping out of your comfort zone.  

I know exactly how you feel because when I first started trading, I was the king of indicators.  You name it, I used it. I thought the more indicators you used the better your chances are of succeeding. Aww....newbies.  We all go through these growing pains.

But when you actually begin trading without indicators, it's a very liberating feeling, and one thing becomes crystal clear:  Based on price action patterns, you can see with your own eyes that the market has an energy, and you can spot natural support and resistance areas.

It may not evident right away, but if you really stick with it and have patience, eventually you can't help but notice it.  After all, that is what forex trading system is all about.

And, what's even more amazing is that there are actual fundamental reasons why these support and resistance areas work.

The best metaphor I can give you is trading price action is like seeing an ex-ray of the market.   You get to see the actual structure of it, and what makes it really tick.             

 

 Forex-Trading-Education

 

   Back to top     |      Print this page   |     Bookmark this page