Price Action Support/Resistance is a key trading concept that helps forex traders identify market structure, trend reversals, and breakout levels without relying on indicators. In this guide, we’ll explore how Price Action Support/Resistance works, its advantages, and the best strategies to trade with it effectively.
Price Action Support/Resistance refers to key price levels where buying and selling pressure historically influenced price movements. Unlike traditional indicators, price action trading relies purely on historical price levels and candlestick patterns to identify high-probability trade zones.
These levels are often formed by previous swing highs, lows, and consolidation zones.
Traders use Support/Resistance for trend reversal signals:
Price Action Support/Resistance helps confirm breakout trades:
Confirmation indicators: Volume spikes, retest of the broken level, breakout candle size.
Support and Resistance zones act as dynamic trading zones in trends:
Combining Support/Resistance with candlestick confirmations increases accuracy:
✅ Pros:
❌ Cons:
Price Action Support/Resistance is a core trading concept that helps traders analyze market structure, confirm key levels, and optimize trade entries. When combined with candlestick patterns and breakout strategies, Price Action Support/Resistance enhances trade accuracy and decision-making.
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