Simple Way To Determine Support and Resistance

Many Foreign exchange traders use support and resistance level to determine trading position levels. But most beginner Forex traders usually use this method more hard than it. In this article we will discuss about how to trade using support and resistance levels using simple system psychological support and resistance levels. Support and resistance level usually is easy way to call levels on the Forex trading chart where the market price has a hard time breaking. Support levels is stop market price from declining below a certain level and resistance levels act like ceiling which the market price can not break that level. This method usually named psychological levels, this support and resistance levels occur if the market price finishs with many 0's.

For instance, if the Forex traders speak about what the see the Euro is going to move in the next period, they usually will not give an answer 1.2343 or 1.8745. Forex traders are usually say round number like 1.2300 or 1.8700.