@Evanture_

SUPPORT
AND
RESISTANCE
TRAINING
Tuesday February 6th
What Is Support?

Support is the price level at which demand is thought to be strong enough to prevent the price from
declining further. The logic dictates that as the price declines towards support and gets cheaper,
buyers become more inclined to buy and sellers become less inclined to sell. By the time the price
reaches the support level, it is believed that demand will overcome supply and prevent the price from
falling below support.

Support Zone

Here is a drawn example of what support

can be like on a chart.

The blue rectangle zone can represent our
price level and the blue line represents
price - Our support zone represents an
area where the demand of buyers come
into the market and we can look for these
zones on our charts
A support level is a level where the price tends to find
support as it falls. This means that the price is more
likely to "bounce" off this level rather than break
through it. However, once the price has breached this
level, by an amount exceeding some noise, it is likely
to continue falling until meeting another support level.
SUPPORT EXAMPLE EUR/AUD DAILY CHART

We can see on this chart multiple occasions where price was traced back to the same level and
bought from there - this blue zone was a strong level that had the attention of mass buyers in the
market !
What Is Resistance?

Resistance is the price level at which selling is thought to be strong enough to prevent the price from
rising further. The logic dictates that as the price advances towards resistance, sellers become more
inclined to sell and buyers become less inclined to buy. By the time the price reaches the resistance
level, it is believed that supply will overcome demand and prevent the price from rising above
resistance.

Resistance Zone

Now essentially the opposite but the same of
support is your resistance these support and
resistance levels are areas we can see on our
charts the price has been too consecutive times
threw out weeks or even months and had that
bouncing reaction on them !
Identification of key support and resistance
levels is an essential ingredient to successful
technical analysis. Even though it is sometimes
difficult to establish exact support and
resistance levels, being aware of their
existence and location can greatly enhance
analysis and forecasting abilities, this is all
apart of an everyday trader routine !
Resistance Example - EUR/USD Weekly Chart

I find the Best Most reliable Support and
resistance levels come off time frames like the
(weekly - Daily - H4) they are longer time frames
but provide much stronger accuracy with core
concepts like this.
On the Chart below we are viewing over 1year on the
EUR/USD of price movement over time you can see a
clear zone/area that price had consecutively came to
and had the reaction of a resistance zone towards it.
These mark a price level that sellers came into !

Resistance Zone
Resistance Level Example

Here is a screen image i had taken and Trading can involve alot of anticipation or waiting
saved to my computer about 4 weeks for the opportunity this here is one example of that -
prior to the date this was created on as this is something we could have taken into
AUD/USD Weekly chart . consideration before price reached that level.
Resistance Level Example
Now here is the same chart on AUD/USD but this was the
after shot - this is simple textbook strategy !

Support and Resistance is no holy grail trading system, its just a

very true nature to the markets that every successful trader will
pay attention to !
Support and resistance wont always just be one All time high or all time low price levels can be a
straight line at one specific price level forever - great contribution with support and resistance as
price can often form zones of support and demand increases around these types of levels for
resistance that we can trade off of ! buyers or sellers.
Monthly chart example All time lows and all times highs are the highest or lowest points a price has been
on an asset like this chart we can see there was an all time low around 2002 - 2003
Here we are years later price came back to that same level and the buyers came in to buy at the
viewing a much lowest point price has ever been !
wider scale in price
as you can see by Then fast forward near 2011 -2013 price is back again to the same level - and has
the dates of year ! the same reaction it did in the past and once again more recent 2017 you can see
how price was bought around the same level and its reaction.
Who wants to buy at all time low price levels - it makes sense to see the reaction we do around
all time low or all time high price levels these are prices where traders,funds,firms or banks
who can move the market come into play is around these low all time levels because when
price is low they can buy cheap whens its high they sell it higher !