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Sunday, 16 May 2010

Forex education : Use support and resistance level

Look at below picture to learn how we use support and resistance level to take profit from forex.

Use a horizontal line to connect past highs/lows,

if the current price is lower than the horizontal line, then that line is resistance level. Put a buy stop above the resistance level to wait for price breaks the resistance level.

if the current price is higher than the horizontal line, then that line is support level. Put a sell stop below the support level to wait for price breaks the support level.

A resistance level can become support level and vice versa depending on whether the current price is below or above the line.








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