The market moves in waves created by support and resistance areas. First, it will find a support area that allows it to move up until it finds resistance. Then it will move down until it finds a new support area and the upward move will continue again. In this example, Gail Mercer, founder of TradersHelpDesk, provides a basic overview of how support and resistance works on a 60-minute EURUSD forex pair. Although Gail’s example uses the EURUSD, the technique works on any markets.
Basic Overview of Support and Resistance – EURUSD
Pivot highs and pivots lows are critical on the charts because they form the support and resistance areas that price will test. Even if price moves through a support or resistance, typical price behavior is a return to the area to test to ensure it will act as support or resistance for a further move.
When combined with the TradersHelpDesk Stochastics indicator, these areas are ideal for reading for either standard divergence or hidden divergence.
The TradersHelpDesk indicators are offered for TradeStation, NinjaTrader and Multicharts. Traders have the option to purchase the indicators individually or in one of our special packages.
The Create Your Own Package is a great package to start for new traders. You can choose any three indicators for either NinjaTrader 8, Multicharts, or Tradestation. Of course, the package also includes online video training, documentation and templates to get you started.
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