#OPINIONLEADER#

Support & Resistance: The Most Powerful Trading Concept in Forex

Every profitable trader — from beginners to professionals — relies on Support & Resistance (S&R).

It is the foundation of price action, market structure, breakouts, and reversals.

If you want clear entries, clean exits, and consistent profits, this is the concept you must master.

🔹 What Is Support?

Support is a price level where the market stops falling and buyers step in.

It acts like a floor for price.

Characteristics:

• Price bounces upward
• Buyers gain control
• Demand increases
• Perfect for buy entries

Example:

If EUR/USD falls to 1.0800 multiple times but refuses to break below…

➡️ 1.0800 is strong support.

🔹 What Is Resistance?

Resistance is a price level where the market stops rising and sellers take control.

It acts like a ceiling.

Characteristics:

• Price rejects downward
• Sellers gain control
• Supply increases
• Perfect for sell entries

Example:

If XAUUSD goes up to 2400 three times but fails to break…

➡️ 2400 is major resistance.

Types of Support & Resistance

To use S&R correctly, you must know the different types:

1. Horizontal Levels (Strongest)

These are levels where price touched multiple times.

• Clear
• Easy to spot
• Highly reliable

2. Trendline Support & Resistance

Support in uptrend → price bounces up

Resistance in downtrend → price rejects down

3. Dynamic Support & Resistance (Moving Averages)

Indicators like:

• 50 MA
• 100 MA
• 200 MA

Act as support in uptrends and resistance in downtrends.

How to Identify Strong Support & Resistance

A strong level has:

✔ Multiple touches

✔ Clear rejections

✔ Big wicks

✔ Strong reversals

✔ High volume

✔ Break + retest behavior

The more times price respects a level, the stronger it becomes.

How to Trade Support & Resistance

Here are the most profitable methods:

. Buy at Support

Look for:

• Hammer candle
• Bullish engulfing
• RSI oversold
• Support bounce

Stop Loss → Below support

Take Profit → Next resistance

2. Sell at Resistance

Look for:

• Shooting star
• Bearish engulfing
• RSI overbought
• Resistance rejection

Stop Loss → Above resistance

Take Profit → Next support

3. Breakout Trading

When price breaks support or resistance with momentum:

• Enter after breakout
• Confirm with retest
• Look for continuation candles

Breakouts = strong momentum moves.

Conclusion

Support & Resistance is the core skill of profitable Forex trading.

If you master it, you will:

✔ Enter at the best price

✔ Catch reversals early

✔ Avoid fake signals

✔ Improve win rate

✔ Trade with confidence

Combine S&R with candlestick patterns and trend direction for highly accurate trade setups.