In forex transactions S and R has an important role, and is the basic science of forex transactions, because it is the nature of the S and R as the upper limit and lower limit has a role in decisions to Transact traders buy or sell, as well as a reference to close positions.
Why is the role of the S and R is so great? in the legal trade price always has limits that marks it as a region or zone traders, such as psychological price of cooking oil rose from 7,000/L being the price of 9,500/L which is the highest price in 10 years ago, and within 1 week of cooking oil price dropped to 8,000/L here we can see that the prices of cooking oil will run in the range of 7,000-9500/L price 7,000 can we refer to as support and price 9,500 we can refer to as resistance , to rise the price of having to test the level of 9,500 repeatedly before finally rising, and to come down in price will also test price levels 7,000 repeatedly before finally going down in price below 7,000/L.
Transactions on the forex market which has high risk traders do not recommend to play on guess guess to do a transaction, using the S and R as a benchmark transaction we can maximize your trading, and went into the market not just with money without the provision of knowledge, S and R are compulsory science that must be mastered for forex traders or stock.
To determine the level of S and R in the Forex market or stock, we can perform a variety of ways, ranging from the use of indicators or are looking for the highest point and the lowest prices with reference candle sticks,
How to get the level of S and R there is indeed a lot we as traders do not need to use all means, please select the way that you think convenient.
For how do I find the level of S and R just wait my next article, thanks and hopefully useful ...