How can I identify levels of support and resistance?

 

Several technical analysis indicators are available, including the Moving Average (MA) Bollinger Bands, Relative Strength Index, and many more. But one of the best tools for properly determining a trading strategy’s entry and exit points is sketching a chart’s support and resistance levels.

Therefore, for those unfamiliar, here is a brief overview of support and resistance levels and how to locate them on a chart for those of you.

What Are Levels of Support and Resistance?

Let’s start by taking a look at a solid illustration of a clearly defined level of resistance on the GBPUSD chart:

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EDGE-FOREX

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