EPISODE 2: HOW TO FIND SUPPORT AND RESISTANCEJul 28, 2020
Many traders new to technical trading struggle in the beginning and one of the basics they struggle with is finding support and resistance. This blog was made to help with exactly that.
You have to pay close attention to one thing on the chart if you trade naked: price. Price is king. Price will tell you all you need to know. The market will tell you where the critical area is on the chart. This critical area will be the foundation for everything you do as a naked trader. A critical area on the chart is a support and resistance zone. You may be familiar with the concept of support and resistance; however, support and resistance zones are different from what many traders characterize as support and resistance. I will call these support and resistance zones by one word— zones. There are five important characteristics of zones that Forex Chasers teaches on and in this blog post I will share only two:
1. Zones are an area, not a price point.
2. Zones are spots on the chart where price reverses, repeatedly.
Take your time to understand all these zones, their importance and how to use them to your advantage. Let us define what Support and Resistance is so we on the same page. Support is a horizontal area on your chart where you can expect buyers to push the price higher. Resistance is a horizontal area on your chart where you can expect sellers to push the price lower.
To get more information on zones and
how to use them, click on this link:
How to find zones
Remember, zones are those spots on the chart where price has repeatedly reversed. However, it may be difficult at first for you to find these zones on the chart. There are several sneaky shortcuts that you can use to help develop an eye for finding zones. Some zones are extremely obvious and easy to find. Other zones are a little bit trickier and may be difficult for you to identify if you have not had experience finding zones on the chart. Please keep in mind these three shortcuts when you are drawing your zones on the chart.
1. Focus on a higher time-frame chart as the zones are much stronger.
2. Use wicks to find the zones on the chart.
3. Ignore minor zones.
Support and Resistance can swap roles. Meaning when support breaks it can become Resistance and when Resistance breaks it can become support.
Forex Chasers offers a course in which it teaches this topic in more detail to give you deeper understandings with mentors to help all the time. CLICK on this link to GAIN ACCESS:
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