Support and Resistance Lines
Support and Resistance Lines can be both horizontal and sloping.
Resistance Lines are drawn through previous pivot highs. Resistance acts like a ceiling.
Depending on its strength, a resistance line can pause an up trend and when very strong can reverse an up trend. Its strength is determined by the length of time it serves as resistance and the number of times it has been touched by price. The longer the period of time, the greater the strength of the line. Some traders will sell at resistance lines.
Support Lines act like a floor and are price areas where a currency pair finds it difficult to penetrate below the Support Line. Support lines are drawn through a previous set of lows and can either pause a downtrend or reverse it depending on the strength of the Support Line. Some traders buy at Support Lines. All Traders see the same thing.
Do not BUY close to RESISTANCE LINES Do not SELL close to SUPPORT LINES
as there is a good chance there will be a reversal
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