Forex Support and Resistance Indicator

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Forex Support and Resistance Indicator

Support and Resistance Indicator are the main additional tools that help traders in doing transaction.

Support and resistance indicator usually based on the volatility. Look at the picture, there are zigzag patterns go upward or called bullish. When the price movement goes upward, and then downward, the highest price achieved is called resistance.

The lowest price before the price goes upward is called support.

In the pair of support and resistance, the value of resistance is always higher than support.

There are two things that are always remembered about support and resistance:

When the price movement goes upward passing the resistance, the resistance will turn into support. And when the price movement goes downward passing the support, the support will turn into resistance.
The more often the price moves upward and testing the resistance, but it is never able to pass it, the more likely a price will swing within support and resistance indicator.