Learn Forex - 3 Steps to Identifying Support and Resistance

What is the most effective form of support and resistance in Forex?

Pivot points? No, pivot points are useless in Forex.

Fibonacci? Fibonacci is ok, but it has a very limited scope.

Trend lines? Trend lines work, but their effectiveness varies in different market conditions.

In Forex, horizontal support and resistance (support and resistance areas) is by far the most effective form of support and resistance.

Generally speaking, when you start to learn Forex trading, you aren’t taught about support and resistance areas.

Why?

Because other forms of support and resistance are much easier to learn. Pivot points and Fibonacci are just indicators. Trend lines are straight forward to identify and place.

… You actually need to put in some effort to identify good support and resistance. You also need to update them regularly.

So how do you identify and place support and resistance areas?

There’s no secret trick or gimmick. Instead, there are 3 simple steps that guarantee perfect support and resistance areas…

… I reveal them all in this webinar.

I held this marathon two hour webinar live for hundreds of people. It is long but it is worth the watch.

How I Place Support and Resistance Areas on Any Chart with 3 Simple Steps

When you’re done watching the webinar, I’ve got a question for you…

Do you already use support and resistance areas? How well do they work for you?

Share your tips and tricks for support and resistance areas below.

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312 comments

Ahmet Yılmaztürk

July 10, 2014

1. In an uptrend, best entries are near the areas of support.
2. In a downtrend, best entries are near the areas of resistance.
3. In a range trend, best entries are near the areas of sup and res.
4. I think we always can use Fibonacci levels especially %50 and %61.8
5. I think some patterns like Head and shoulders, triangle etc. have some importance at creation of the sup and res.

Mustaffa

July 12, 2014

Thanks for the webinar, but I really don’t understand what is the significance of the CLOSE on an 8H chart? 8H is an arbitrary duration.. Also different brokers have different timezones, so candles look different. I believe the only significant close level is the D1 chart as it shows global market moves, even with different timezones they tend to look similar across platforms.

Can you help us understand that?

Cheers!

Alex

July 13, 2014

I use SR areas as base, but when they are confirmed by Fibs, trendlines, moving averages or psychological levels and then candlesticks they give very easy pips to take.

peter rogers

July 16, 2014

Well I`ve tried just about every system , and lost on them all (demo) . Yours sounds different enough
despite your somewhat rambly presentation, to investigate . I thank you for putting all this for free
and will give it a real go on the top most popular pairs. I`ll keep you informed if you give me your email.
Best wishes

Peter

NickB

July 16, 2014

Fair enough. I do not think Fibonacci is bad, I just think it is somewhat limited.

NickB

July 16, 2014

8hr and Daily SR is for the most part the same. I simply find that placing SR on the 8hr is easier because you can view more price action data. However, the time frame is not so small that you see too much data.

NickB

July 16, 2014

Yeah, I agree. Support and resistance tends to be strong when other forms of support and resistance are lined up with them.

NickB

July 16, 2014

Rambly is about right. I am not a internet marketer, so my webinars tend to be a little messy. However, I do try my best to get my point across, I am glad you liked it overall.

fuwa

July 22, 2014

Hello, Nick!

I’m wondering what application do you use to draw in your webinar?

Thanks!

NickB

July 25, 2014

Camtasia, it is just video recording software though.

Satya

September 2, 2014

Nick, Could you please post the recordings of the recent support and resistance 2Hr webinar that you conducted. I was not able to attend, but i would like to watch it.

Howard Dixon

September 19, 2014

Hi Nick,

The webnairs are being done on demo accounts – why? I thought they were taboo.

Regards

Howard

Nick

September 19, 2014

I am not sure what you mean about demo accounts being taboo. I use demo accounts for webinars because I do not want to share my private account information or show my account balance. For example, would you stream your desktop live to thousands of people while you access your online baking account? I am guessing you wouldn’t as your bank account contains personal information. I do not trade on demo accounts but when I need a quick and efficient charting platform to use in a webinar a demo account is the best option.

Nick

September 19, 2014

A link was posted a while ago.

https://bullrushacademy.com/forex-blog/forex-tips/learn-forex-trading-3-simple-steps-to-identifying-support-and-resistance/

I think I will add a search function to the blog. It will make it easier for people to find stuff.

Howard Dixon

September 20, 2014

Hi Nick,

Thanks for the feedback it makes absolute sense. I’m enjoying the content of the forex4noobs website there is a tremendous amount of great stuff.

Many Thanks

Howard

Nirmal

June 6, 2015

Dear Nick

Very nice video thanks for that. I can draw support and resistance easily but my problem is where to buy and sell? How can we enter the market? Can you please explain me what type of candlestick give us mRket entry signal please

jesslew

June 15, 2015

Hello Nick,

I have been watching your videos recently and was just wondering is there a certain number of bounces you need in order to confirm a level? Thank you for the videos as well.

leo1385

June 30, 2015

it`s ridiculous, but , what is the program that you are using?
i`m beginner

Teodor

October 25, 2015

I am using already. I make SR on Daily chart and trade on 4 H. Trade setup is pin bar.
I am doing this for last 14 days and looks promissing…only yestrday i hade very bad day.
Not shure if this is working very well for me…