How To Draw Support And Resistance | Front Trader
5How To Draw Support And Resistance | Front Trader
#support #resistance #trader
1. *Support and Resistance*
2. *Trading*
3. *Forex*
4. *Stock Market*
5. *Technical Analysis*
6. *Day Trading*
7. *Swing Trading*
8. *Price Action*
9. *Chart Patterns*
10. *Trend Lines*
11. *Forex Trading*
12. *Crypto Trading*
13. *Bitcoin Trading*
14. *Investing*
15. *Trading Strategy*
16. *Breakout Trading*
17. *Rejection Zones*
18. *Supply and Demand*
19. *Trading Signals*
20. *Market Structure*
*Support and Resistance – The Foundation of Technical Analysis*
*Support* and *Resistance* are key concepts in **technical analysis**, helping traders identify potential price reversal zones.
*Support* = A price level where buying interest is strong enough to prevent further decline (demand zone).
*Resistance* = A price level where selling pressure overcomes buying, preventing further upside (supply zone).
#### *Why Are They Important?*
✅ *Entry & Exit Points* – Traders buy near support and sell near resistance.
✅ *Trend Confirmation* – Breaking resistance signals uptrends; breaking support signals downtrends.
✅ *Risk Management* – Stop-loss orders are often placed beyond these levels.
#### *Types of Support & Resistance*
🔹 *Horizontal (Static)* – Fixed price levels (e.g., previous highs/lows).
🔹 *Trendlines (Dynamic)* – Diagonal lines connecting swing highs/lows.
🔹 *Psychological Levels* – Round numbers (e.g., $100, 1.0000 in Forex).
🔹 *Moving Averages* – Act as dynamic support/resistance.