Support and resistance levels are key concepts in forex trading. Support is a price level where downward momentum slows and buying pressure overcomes selling, while resistance is where upward momentum slows and selling pressure outweighs buying.
At Currency Trade, our forex trading courses teach how to identify support and resistance levels on charts. We cover chart patterns, Japanese candlesticks, pivot points, and using volume profiles to spot areas where the market may reverse. Knowing support and resistance zones helps traders set entry and exit levels for trades. Our courses help you master analyzing support and resistance to improve trading outcomes.
SR BASICS LONG AND SHORT TRADES
The support and resistance concepts taught in Currency Trade’s forex courses help traders identify potential long and short trade entry points. Long trades aim to profit from rising prices by buying at support levels and selling at resistance. Short trades involve selling at resistance and aiming to repurchase at support in a falling market. We teach techniques to spot strong support and resistance zones that can signal good areas to enter longer term directional trades, as well as more precise points to aim for shorter term scalping profits.
SR BASICS: RISK REWARD RATIO IN FOREX
A key concept Currency Trade focuses on in our forex support and resistance trading education is risk reward ratio. This refers to how much capital you risk on a trade compared to the potential profit. Our courses teach risk and money management principles to maintain 1:2 or higher risk reward ratios for trades, meaning aiming to make twice as much profit as you risk. We coach planning entries and stop losses at support, targeting take profits at next resistance level while risking small % of account per trade.
SR CHART PATTERNS – JAPANESE CANDLES
In Currency Trade’s forex support and resistance trading courses, we dig into powerful chart patterns. A focus is Japanese candlestick patterns like Doji, Hammer and Inverted Hammer, Engulfing, Morning and Evening Stars. These candles signal potential reversal points where support may prop up falling prices or resistance stall uptrend. Our simulated historical chart readings interpret candles to spot upcoming support and resistance zones. We teach combining candle signals with volume analysis to accurately forecast price levels where markets may reverse due to buyer/seller conviction.
SR PIVOT POINTS
Currency Trade’s forex education also introduces pivot point analysis for support and resistance. Pivot points are calculated from previous period’s price data to determine probable turning points. Our courses teach calculating daily, weekly or monthly pivots to isolate key support and resistance levels with accuracy. We focus on floor pivots based on high, low and close prices to spot areas where reversals are likely.