Support and Resistance in Forex
October 16, 2025•1 min read
Currency Strength Meter Team
Forex Analyst & Writer
#forex#support resistance#price action#technical analysis
Introduction
Support and resistance are fundamental tools for forex traders. They help pinpoint potential entry and exit zones by identifying where price tends to stall or reverse.
What Are Support and Resistance?
- Support: A level where price often stops falling and may bounce upward.
- Resistance: A ceiling where price struggles to move higher.
How to Draw Them
Use swing highs and lows, round numbers, and previous price reactions. Combine with moving averages or Fibonacci levels for stronger confirmation.
Trading Strategies
- Bounce Strategy: Enter trades when price respects support/resistance.
- Breakout Strategy: Trade after price breaks through a key level.
- Retest Strategy: Wait for a pullback to confirm breakout validity.
Tips for Accuracy
- Use multiple timeframes.
- Confirm with strength meters or momentum indicators.
- Avoid placing trades directly on news events.
Conclusion
Mastering support and resistance allows traders to find precise entries with favorable risk-to-reward ratios—essential for consistent forex success.
🔹 Key Takeaways
- Use strength meters to spot strong/weak pairs quickly.
- Combine with price action for accurate entries.
- Stay aware of major economic events.
💬 Comments
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