Forex | Dubai Forex Group

$4.99 Only

The Secrets Of Pro Traders Book

$24.99

Discover the 7 Secrets that Pro Traders And Banks Don't want You to know.
Double and Triple Your Current Profit.
Scale up Your Trading to the next Level.
Discover the Secrets of Pro Trading.
Become Not Just a Trader But a Pro Trader.
Join the 1% Of Pro Traders.

*Click Reserve My Copy Now, And Text Book!

Reserve My Copy Now!

SUPPORT AND RESISTANCE SECRETS

Support and resistance levels are by far the mostused concept among professional traders:

Support:

Support simply means The act of buying to support the rise of the price.
But this act of buying happens in a specific levels, based on structure analysis, these levels are called Support Levels.

Resistance:

Resistance simply means The act of selling to resist the rise of the price.
But this act of selling happens in a specific levels, based on structure analysis, these levels are called Resistance Levels.

How to find Support and Resistance Levels?

There is No straight forward step by step guide on how to find support and resistance levels.
The method is discretionary and demands lot of experience and even pro traders sometimes define the levels wrong.
Now i will give you all the best tips that Pro traders use when looking for support and resistance levels:

1- Define the Trend:

The first thing Pro Traders do is Identify the type of current market movement As shown in the section of How to Identify the trend, pro traders take the first decision after they know the kind of market they are dealing with:

Up Trend:

In an up trend a Pro trader would usually use the pull backs to the swing high of the previous Impulse as a support level. (as shown in the figure below.)

Down Trend:

In an down trend a Pro trader would usually use the pull backs to the swing low of the previous Impulse as a resistance level. (as shown in the figure below.)

Support and Resistance Levels:

Combining the two method Pro traders would then look for confluence of these levels and the more confluence as shown in the figure below the more the importance of the level.
And that would mean that this level is more reliable to be used in the future, as indication of price rejection or price continuation.

Is support and resistance Level or Zone?

The whole Idea of a zone is just giving an imaginary tolerance to where the level will be drawn.
For example giving a +-5 pips interval to the levels you draw, and that would create a zone of tolerance that would be considered as a good area for your
support and resistance level.

As shown in this figure below.
Please note that drawing S/R levels is a very important and hard thing to do, so take your time and practice drawing these levels.

S/R levels Secret of Pro traders and Banks:

Finding support and resistance is not only hard but takes a lot of time and energy and even when support and resistance are drawn traders are not 100% sure about the accuracy of these levels and how reliable these level are to be used in the future
as trading levels.
That why most banks are developing new tools to help their top traders find a more reliable, accurate and precise levels, off of which they base their trading activities.
Note:

All levels in the previous Example are found by Algorithm, The S/R levels Finder.

Such Algorithm will help find the best and most accurate levels using a smart formula that simulates and out perform the standard why the traders use to find these levels.
In dubaiforexgroup we use such tool that we have developed over years, and which helped hundreds of traders in their trading journey.