Support and Resistance key points

=> Support and Resistance are the pre-determined price level that acts as the barrier for the price and from where the price may reverse.

=> Support level act as the best friend for the buyers which stops the price from going down any further.

=> Similarly, the Resistance level is just the opposite of the support level. the resistance level acts as the best friend for the sellers which stops the price from going up any further.

=> It is very difficult for the price to break the Support and Resistance level. however, if the price succeeds in breaking the same level due to market uncertainties then it is preassumed that the price will continue to fall or rise until the next level.

=> Whenever the price touches the Support level the price begins to rise and vice versa when the price touches the Resistance level the price begins to fall.

How to draw Support and Resistance levels?

In order to draw Support and Resistance level. firstly, log in to your Expert option account. In case you don’t have one fill out the form below.

Once you have logged in. click on the tools icon and select the horizontal line from the menu.

Secondly, select your chart type to candlestick plus select your desired time frame. the best time frame to trade with the support and resistance level is 30 minutes to 1 hour.

Now, place the horizontal line below the two low of two candles at the same distance for the support level.

Vice Versa, place the horizontal line above the two high of two candles at the same distance for the resistance level.

How to trade with Support and Resistance on Expert Option?

While trading with Support and Resistance you just need to remember the golden rule.

The golden rule of Support & Resistance is as follows:

When the price touches the support level. the price is most likely to bounce back up in an upward trend. In case, the price breaks the support level due to market volatility the price is likely to move down until the next support level.

Similarly, when the price touches the resistance level. the price is most likely to bounce back down in a downward trend. In case, the price breaks the resistance level due to market volatility the price is likely to move up until the next resistance level.

Final words

Trading with Support and resistance levels is pretty much simple and easy. Given above is the 10 minutes chart of GBP USD and we can clearly see the price touching the support level and the price bouncing back up in an up trend. It is a signal of an upcoming bullish trend and here, we can place a buy trade for 10 minutes.

Similarly, given above is the 10 minutes chart of GBP USD and we can clearly see the price touching the resistance level and the price bouncing back down in a downtrend. It is a signal of an upcoming bearish trend and here, we can place a sell trade for 10 minutes.

I hope you have found this article helpful. I will highly suggest you try this trading strategy on Expert Option demo account.

Till then I wish you a very best of luck 😉