Resistance is a price level where rising prices stop, change direction, and begin to fall. Resistance is often viewed as a “ceiling” keeping prices from rising higher. If price breaks support or resistance, the price often continues to the next level of support or resistance.
How do you identify support and resistance in forex?
#5: Support And Resistance Levels Are Zones
- Identify the first resistance peak or the support trough and draw your first line.
- then as price moves along and then you have an outer extreme peak/trough form…that forms your outer line.