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Forex Journal Team

June 8, 20262 min read

Support and Resistance: The Most Reliable Trading Concept

strategysupport-resistancetechnical-analysisbasicsprice-action

Support and Resistance Trading

Support and resistance are price levels where the market has historically reversed.

Support

A price level where buying pressure is strong enough to prevent further decline. Price bounces off support.

Resistance

A price level where selling pressure is strong enough to prevent further advance. Price rejects off resistance.

How to Identify Strong Levels

Previous swing highs/lows — The most obvious levels. The more times price has touched a level, the stronger it is. Round numbers — Psychologically important. EUR/USD at 1.1000, S&P 500 at 5000, Gold at $2000. Moving averages — The 50, 100, and 200 EMA act as dynamic support/resistance. Trendlines — Diagonal support/resistance in trending markets.

Trading Strategies

Strategy 1: Level Bounce

Price approaches a strong level → wait for a reversal candle → enter in the direction of the bounce.

Strategy 2: Level Break

Price breaks through a strong level → wait for a retest → enter in the direction of the break.

Pro Tips

  • The more times a level is tested, the weaker it becomes
  • A break of resistance becomes support (role reversal)
  • Use higher timeframes to find stronger levels
  • Combine with market structure for higher probability trades

Support and resistance work in every market and on every timeframe. Master these and you've mastered 80% of technical analysis.

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Written by Forex Journal Team

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