Support - Resistance

[forextradercb]

Hello,

I have not fully understood these 2 terms yet. The explanations I find in the internet are too different from each other, so I would be very grateful if someone could generally explain how one should understand these 2 terms. Many thanks.

[Rhody Trader]

Support is a price point or range below the current market price which, if reached, can be expected to at least slow down, if not halt, a price decline.

Resistance is a price point or range above the current market price which, if reached, can be expected to at least slow down, if not halt, a price rise.

Does that help?

[forex_4me]

Hi forextradercb,
Support is a level where Buyers (Bullish Power) is far greater Than Sellers ( Bearish Price ) that is why when price comes to this area - buyers find it as attractive area for buying and adding to their positions ...

Resistance is the inverse ,,,

Hope this made things more clear to you.

FOREX4ME

[forextradercb]

Both are very helpful. Thank's.

[Gab]

Dear all, Sorry, I can't catch the point. Do you know any simple explanation c/w the graphic example? Pls recommend to me. Thx

[ezekiel]

Here is a sample graph of CAD showing support and resistance ...

You can see it formed a channel, in which the support finanly broke.

If price comes back up to this level around 1.1306, this support is now considered resistance, and there should be a handful of sellers waiting there...

Hope this helps

[Gab]

Thx, Kiel

I think I got the point.
Support is where the price is dropping (bearish) and moving on average lowest price at the moment, while resistance is where the price is recovering from the bearish, become bullish, moving on average highest price at the moment.
Means that when it start moving to support mode, we should sell to stop loss, and at the lowest support point we buy, expect gain profit when it moving to resistance mode.
If looking for good-profit entry point, we shoud buy at this moment when it start moving to resistance mode.
Pls correct me if I'm wrong, Kiel. Advise, critics, suggestions, etc. are welcomed.
Again, thanks for your info, Kiel. Highly appreciate it.

Thx
Gab

Originally Posted by ezekiel

Here is a sample graph of CAD showing support and resistance ...

You can see it formed a channel, in which the support finanly broke.

If price comes back up to this level around 1.1306, this support is now considered resistance, and there should be a handful of sellers waiting there...

Hope this helps

[ezekiel]

Here is a follow up chart of the CAD, you can see the market remembers
support and resistance, and sold the dollar at the previous break...

Gab, your correct, if you see a strong area of support - buy, area of resistance - sell. It's not an exact science but identifying these areas is a start.