How to determine support and resistance?

Definition
The resistance is the highest price reached that candles can’t go above it and reverses
The Support is the lowest price reached that candles can’t go below it and reverses
When The price has broke the Resistence level Then it will become the Support of the next candles

When the price has broke the support level then it will become the Resistance level of the next candles

support and resistance


First thing you need to consider is that support and resistance are NOT EXACT LEVELS
Often times you will see a support or resistance level that appears broken, but soon after find out that the market was just testing it. With candlestick, these “tests” of support and resistance are usually represented by the candlestick shadows
Notice how the shadows of the candles tested the 1.4700 support level. At those times it seemed like the market was
“breaking” support. In hindsight we can see that the market was merely testing that level

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