Business-Insider

by S. Wade Hansen

I produced a video today to illustrate a few ways traders can use support and resistance in the forex market. In this video, I outline a trade setup on the USD/CAD that I see forming today. To see the video and why I think there is a great buying opportunity for the USD/CAD today, click here:

http://www.pfxglobal.com/index.php?o...k=view&id=2124


For a sneak peak of what you'll get from my discussion of support and resistance, read on.



Here's what you will learn in this section:

- Support and resistance levels visually represent the struggle between supply and demand in the forex market

- Support and resistance levels can help you identify when a currency pair is going to stop and turn around, but they are not infallible

- Support and resistance levels are not exact price levels, they are ranges

- Support and resistance levels can be either horizontal or diagonal


Buyers and sellers are in a constant tug-o-war in the forex market. Buyers drive the prices of currency pairs higher, and sellers drive the prices of currency pairs lower. If you want to be profitable in your forex investments when buyers are in control, you need to follow the trend and be a buyer too. If you want to be profitable in your forex investments when sellers are in control, you need to follow the trend and be a seller too. Seems pretty easy, right? Well...almost.

Most forex investors are able to make money when a currency pair is trending in one direction or another. The trick is holding onto your profits and making money when the price of the currency pairs decides to turn around and start moving in the opposite direction. How many times have you asked yourself the following:

- "I've made some money on this trade. Is it time to get out?"

- "This trend has been going for a while. Can I still jump in and make some money?"

- "It looks like this currency pair is going to turn around. When should I enter my trade in the opposite direction?"


For the rest of this lesson and a video describing the buying opportunity on the USD/CAD I see today, click here:

http://www.pfxglobal.com/index.php?o...k=view&id=2124
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