What are Resistance and Support Level How to Draw them

Support and resistance are one of the most widely used concepts in Binary Options and Forex trading. Strangely enough, everyone seems to have their own idea on how you should measure them, and some of them don’t know what are Support and resistance and most important thing is that they make some mistakes on how to draw them!

Let’s have a look at this picture and this is a basic support and resistance drawn

Support and resistance


Look at the diagram above. As you can see, this zigzag pattern is making its way up (bull market). When the market moves up and then pulls back, the highest point reached before it pulled back is now

resistance.
As the market continues up again, the lowest point reached before it started back is now support. In this way, resistance and support are continually formed. The reverse is true for the downtrend

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