ForexFunction Logo

"Trading on margin involves a high level of risk"

 Market Signals |  Technical Indicator Signals |  Cross Pair Rates |  Live Spread |  Live Charts |  Daily Pivot Points
Summary: Support & Resistance, Trend Lines & Price Channels - Forex Function

Summary: Support & Resistance, Trend Lines & Price Channels

Last Update: 18 December,2016
Print PDF

Important Points to remember while using Support and Resistance Price Levels

Wow! We have learned the basics about support and resistance levels, trend lines and price channels and also gone through the advanced methods as how to use them while trading forex.

Let’s have a quick recap of all the lessons, we learned about support and resistance, as a result, it would become easier to implement while trading forex than just jumping on another lesson.

9 Points to Remember while using Support and Resistance Price Levels
8 Points to Remember while using Trend Lines
7 Points to Remember while using Price Channels

5 Basic Points applied to any type of Technical Lines i.e. whether it would be Support and Resistance Line, Trend Line, Price Channel Lines or any other type of lines.

1. The line i.e. price zone is valid until it is broken i.e. price may penetrate above/below the lines, but they are valid until the bar or candlestick shows a significant close above/below the lines.
2. Whenever the price breaks a support or resistance price level, it could later retest it before continuing in the opposite direction and, as a result, this fresh price level becomes the new resistance or support price level. We can benefit from the newly established price support or demand zone to follow the new trend.
3. The more often and quickly a price level is tested, it becomes weaker, because if the market price returns again and again, the pending orders and demand will get fulfilled, as, so there is a possibility of price breaking the price level.
4. The longer the price is supported or resisted at a price level, the stronger could be the future move after breaking that price level.
5. All lines should be created and implemented if the price respects them, otherwise do not forcefully draw lines by adjusting it to the price points because doing such a thing would result in only making us happy, but would not be reliable and also inappropriate, as a result, you might pay some ticket fees for entertaining yourself.

Trading the Beautiful Lines

It is strongly advised that all these beautiful lines should be used as an additional tool with your forex trading strategy for confirmation that yes; odds are in my favor, before entering the market.

As we have seen in the previous chapter, how to trade a bounce back and break out at a demand and supply level, we should always enter the market in a conservative way after getting a confirmation for our perfect entry in an established trend direction. Yup! the support and resistance lesson has completed, go ahead, grab some charts and explore your artistic talent to draw all the beautiful lines


Submit Your Comments:

FXCC Forex Trading


FOREX FUNCTION MEMBERSHIP

New Year 50% discount on subscription & all duration for limited time (Coupon Code HNY17 for AutoCopier | Use HNY2017 for signal alert)

FX PREMIUM SIGNAL & AUTOCOPY
Email & Twitter SMS Alert | Secured & Errorless Auto Copy | Support All Broker & Account Types | Premium eBooks, Analysis & Strategy | Custom Risk Management

Plan NameBuy LinkEmail AlertTwitter
SMS Alert
Signal Auto
Copier EA
Free VPS
(1-3 Months)
Monthly Target
(Minimum)
Price
(Montly)
Price
(Quarterly)
Price
(Semi-Annually )
Price
(Annually)
Setup
AUTO COPY Subscribe NowYes Yes Yes Yes 500+ Pips $25 23$ 20$$15Via Live Support
SIGNAL ALERT Subscribe NowYes Yes No No 500+ Pips $14 12$ 9$$7No Need
CashBack View DetailsYes Yes Yes Yes 500+ PipsFree Free FreeFreeVia Support

FF FOREX VPS
Windows 2008/2012 | Server Location Amsterdam, France, Canada | Low Latency From Brokers| Super Fast Trading Experience | All types of EA supported | 3 Days Money Back Guarantee

Plan NameBuy Link CPU RAM Disk BandWidth Price (Montly)Price (Quarterly)Price (Semi-Annually )Price (Annually) InstallationBackUpSetup Fee
Economy buy now2 Core 756MB 15GB 1TB $6.50/M$6.20/M$5.90/M $5.50/M MT4 Pre-InstalledYesFree
Standard buy now 2 Core 1GB 25GB 1.5TB $8.50/M$8.20/M$7.90/M $7.50/M MT4 Pre-InstalledYesFree
Premiumbuy now 2 Core 2GB 40GB 2TB $16/M$15.50/M$15/M$14.50/M MT4 Pre-InstalledYesFree
Advanced buy now4 Core 3GB 60GB 2.5TB $26/M$25/M$24/M $22/M MT4 Pre-InstalledYesFree
Professionalbuy now 4 Core 4GB 80GB 3TB $33/M $32/M$31/M$29/MMT4 Pre-InstalledYesFree
Business buy now 4 Core 6GB 100GB 4TB$46/M $45/M$44/M$42/MMT4 Pre-InstalledYesFree
Platinum buy now 4 Core 8GB 120GB 6TB $59/M $58/M$57/M$55/M MT4 Pre-InstalledYesFree
Diamond buy now 4 Core 12GB 180GB 8TB $89/M $87/M$85/M$81/MMT4 Pre-InstalledYesFree

***We accept Neteller, Skrill, MasterCard, Paypal, Payza, Perfect Money, Webmoney !