Be a Forex Pro – Significant Support/Resistance Lines

Posted by Nick 14

Significant support/resistance lines, do you use them? If you don’t then you’re making a critical mistake!

Recently I have been frequenting the Forex4Noobs chat room and speaking to a lot of newbie traders. One thing I noticed is many new traders are not marking significant support/resistance lines on their charts. Significant support/resistance lines mark out points of extreme support and resistance. Knowing where these points are located is invaluable for:

1. Managing open trades.
2. Knowing when/if to enter a trade.
3. Trading reversals.
4. Knowing when you should stay out of the market.

In the video below I show you how to spot and place support/resistance lines.

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EDIT: Below is an update to this post.

Update

The video above was shot earlier today just after London session open. In the video the second line I placed on that chart was the 133.30 support/resistance level. If you take a look at a current GBP/JPY chart you will see an extremely long bullish trend stopped in its tracks by that same 133.30 line. This just shows you how important these lines are! You can see an image of this below:

Was This Helpful?

Was this post and video helpful? Please let me know by leaving a comment below. I would really like to know if this helped or if I should expand on it!

Yolette

Thanks Nick. I sometimes stray and go back to my cow girl style.
Romsy

Yes, Nick that extremely long bullish trend started on early January this year and the minor psycho level of 133.30 was actually a bounce from the bullish trend line. Another issue was the time of the bounce between 17.45 and 18.30 hrs looking at the 15M chart where we can expect a reversal after 14.00 hrs
At mentioned period we see indecision candles, we see preceding trend so we have enough indication that trend is going to change. Further economic news of BOE MPC pushed the price up to 134.671 Constant line level.
Rgds, Romsy
J Lee

Awesome vid – thanks!!!!
Jeron

There are things that need to be said again and again, the rehearsal mechanics . Thank you Nick !
Adam Smith Forex

Thanks for this great share.
Hope to get more good share here.
Mcfried

Wonderful material, Thanks
db-trader

another brilliant video. I learn something new every time I view your vids
Dave

Awesome Vid as per usual Nick, good for a refresh
Timebandit

Hi Nick, a good refresher for me….thanks
Harry

Brilliant video. Very much appreciated. How then you know whether the price is going to go through a line or bounce off a line for a trade?

Thanks
xerof

thanks nick!
u r owesome!
appreciate
Pingback: Live Forex Trade Video -30 Pips on GBP/JPY
Richard

I find all your material very useful and can’t wait for your emails always something interesting good luck to you
Richard60
Eagle85

Thank you, Nick.
The video was excellent and very much appreciated.

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