There are many traders who are interested in how to trade with support and resistance. There are also a lot of forex traders who believe they already know how to.
What’s so great about trading the support and resistance areas is just how strong and reliable they are. You can trade with a little bit more confidence knowing that you are entering and exiting your trades in better price areas.
What most people think support and resistance are?
I’m not certain as to how long you have been trading. If you’ve been trading for a while now, you probably have seen those indicators that will put the supposed pivot, support, and resistance lines automatically on you chart. You know….S1, S2, R1, R2, etc…
Do you know what those lines represent? They are just basic formulas. You can’t spot TRUE support and resistance from a simple math formula. There may be times when the price bounces off of one of these lines, but you don’t have any deep understanding as to why the price moves the way that it does.
Support and Resistance is something you see.
If you want to trade support and resistance, let me be the first to tell you that its not in your “indicator menu” on your charting platform. It can be seen with your own eyes on a plain bar chart.
You just have to understand the idea of what price action is, and why the more volatile a price moves, the easier it is to spot the support and resistance. The choppier the market, the tougher it is.