Support and resistance levels on Forex

A lot of Forex strategies are build on the technical analysis. Recognition of levels of support and resistance is important skill for each trader. The very concept of "support" and "resistance" levels is very simple in the interpretation but very important in the work of each trader. More information about technical analysis you will find in video lessons of HQBroker Forex.
Graphs are the main working tool on the market. The exact and timely chart analysis can give trader huge advantage against competitors. The one, who calculated trend and opened or closed an order in time, will get the largest profit. If you watch closely at forex graphs, you will notice invisible lines, when price reaches them it’s changing its movement. This is support and resistance Forex. The first doesn't allow the chart to fall below, metaphorically speaking. The second is a barrier that doesn’t let the chart to rise above. When the price breaks support level it can become resistance and vice versa.
Support and resistance levels. Features of levels formation
It is important to remember that these levels aren’t definitive figures; it is rather a range of the prices. After first turning, the graphics can break the level from the second attempt but such test can happen several times. It is considered that the more times the price has tested support or resistance level the stronger they get. As a result, the power of price movement depends on level strength. It is more convenient to look for basic levels on the linear chart as the minimum and maximum values, which can confuse user, are displayed on the candlestick chart. In hq broker review you will find advice about what charts are better for beginner traders.
Definition of level breakdown is the whole science for traders, because everyone has his own way of calculation. Whatever strong wouldn't be resistance or support level the price will break it. The price duration is one of ways to see future breakdown and to open the deal. In cause of long-term run, the price is likely to break it. But one should not forget that breakdowns can be false. In this case the price line gets through a barrier for one moment but returns quickly to its trend. When something like this happens, the placed stop-losses are reacting often so, as a result, a trader would be at a loss.
Results
To learn the main methods of work with resistance and support levels in Forex, you should to know the following:
1. Levels aren’t the exact price;
2. Levels can change values after breakdown;
3. Level becomes more powerful from the number of testing;
4. Level gets breakdown in case of price duration.
Practice is necessary for each trader to better define the movements of the price in relation to resistance and support. Many traders often rely on their intuition, but with extensive experience. Check forex broker scams list and then look for regulated broker for your trading.