Support and Resistance

The forex market is a support and resistance market, all trends start and end at support and

resistance.

All reversals and retracements start at support and resistance.

Forex trading becomes a lot easier if you are an expert at identifying key areas of forex support and

resistance.

Support and Resistance

• Take the short term support and resistance (M5 –M15) Time Frames

• Compare to the longer term Support or resistance (H4 Time Frame and Larger)

• Calculate the difference and this is your pip potential

• You can now estimate risk versus reward• Do I want to trade this pair ?

Price Alarms

• You can set price alarms on Metatrader or other platforms

• The price alarms can be set at short term or longer term support and resistance levels.

• You can also set a straddle alarm, which is two price alarms on the same pair, if it is trading in a tight range to monitor for a breakout in either direction.

Price Alarms

• If a pair is in a cluster or layers of support or resistance set the alarms outside of the cluster.

• When the alarms hit if you are in the main trading session check The Forex Heatmap ®.

• Spikes are not significant, areas of support and resistance are, if a pair spikes you can reset your alarm slightly higher or lower.