How to Find Support & Resistance Levels for Forex & Daytrading


Discover the art of Forex and day trading by mastering support and resistance levels. Our comprehensive guide dives deep into these crucial trading concepts, offering you strategies, insights, and techniques to navigate the markets effectively. From historical analysis to psychological levels and combining different analytical methods, learn how to enhance your trading decisions and risk management in the ever-changing world of Forex and day trading.


Tutorial: How you can actually draw support and resistance the correct way?

In the dynamic world of Forex and day trading, understanding support and resistance levels is crucial for successful trading strategies. These levels, which mark the points where price trends tend to change, offer traders valuable insights into market trends and potential reversal points. This article will delve into effective methods for identifying these pivotal levels, and how traders can leverage this knowledge in their trading decisions.

Understanding Support and Resistance

What are Support and Resistance Levels?

Support and resistance levels are key concepts in technical analysis used by traders to predict price movements. Support levels represent a price floor where downward trends tend to halt or reverse due to a concentration of demand. Conversely, resistance levels act as a price ceiling where upward trends often pause or reverse because of an accumulation of supply.

Importance in Trading Strategies

Identifying these levels enables traders to make informed decisions about entry and exit points, set stop-loss orders, and predict price breakouts. They are fundamental in developing strategies for both Forex and day trading.

Identifying Support and Resistance Levels

1. Historical Price Data Analysis

One of the primary methods of identifying these levels is through analyzing historical price data. Traders look for recurring patterns where the price has consistently bounced off certain points.

  • Horizontal Support and Resistance: This involves identifying horizontal levels on a chart where the price has reversed multiple times in the past.
  • Trendlines: Drawing trendlines along rising valleys or falling peaks can also reveal dynamic support or resistance levels.

2. Psychological Levels

Psychological levels often occur at round numbers (e.g., 1.3000 in EUR/USD) where traders place orders in high volume, creating potential support or resistance zones.

3. Moving Averages

Moving averages smooth out price data over a specific period and can act as dynamic support or resistance levels as the price interacts with these averages.

4. Indicators and Oscillators

Technical indicators like the Relative Strength Index (RSI) and Fibonacci retracement levels can provide additional insight into potential support and resistance areas.

Strategies for Trading Support and Resistance

Trading the Bounce

This strategy involves entering a trade when the price bounces off a support or resistance level, predicting that the trend will continue in its current direction.

Trading the Break

In contrast, this strategy is based on entering a trade when the price breaks through a support or resistance level, indicating a potential new trend.

Combining with Other Analysis

Integrating support and resistance analysis with other technical and fundamental analysis methods can enhance the accuracy of predictions.

Risks and Considerations

While support and resistance levels are powerful tools, they are not infallible. Market conditions can change rapidly, and traders must be prepared to adjust their strategies accordingly.


Support and resistance levels are foundational elements in Forex and day trading, offering crucial insights into market behavior. By accurately identifying and leveraging these levels, traders can significantly enhance their trading strategies, though they must remain vigilant to the ever-changing market dynamics.

In conclusion, a deep understanding of support and resistance in trading can lead to more informed decisions, better risk management, and improved trading performance. As with any trading strategy, continuous learning, practice, and adaptation are key to success in the volatile world of Forex and day trading.



PLEASE NOTE: The articles on this website are not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.

Some of the articles have been created by Artificial Intelligence for marketing purposes. Not all of them has been reviewed by humans so these articles may contain misinformation and grammar errors. However, these errors are not intended and we try to use only relevant keywords so the articles are informative and should be close to the truth. It’s recommended that you always double-check the information from official pages or other sources.

Some of the links on this page may be an affiliate links. This means if you click on the link and purchase the item, I will receive an affiliate commission.

Try IQ Option broker and see yourself why millions of traders use it

IQ Option - download on the App Store & Get it on Google Play

24/7 Support

$1 Minimum Deal

$10 Minimum Deposit

Free Demo Account

deposit methods
Multi-chart platform IQ Option broker Tablet Mobile PC


IQ Option - download on the App Store & Get it on Google Play

Learn how to trade!


Video - How to trade CFD?How to trade CFD? (00:49)

This financial instrument allows you to speculate on both upward and downward price movements of stock without actually owning them.

Video - How to trade Binary Options?How to trade binary options*? (01:22)

Predict which direction the asset price will go in a few minutes. Profit up to 95%, with loss being limited to the sum of your investment.(*Binary Options are not available in EU)

Video - Forex. How to start?Forex. How to start? (01:01)

The largest and most liquid market in the world where the main underlying asset is foreign currencies traded in pairs. Watch video to know more.


General Risk Warning: The financial products offered by the company carry a high level of risk and can result in the loss of all your funds. You should never invest money that you cannot afford to lose

This website is not intended for viewers from EEA countries. Binary options are not promoted or sold to retail EEA traders.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

About Us is not an official website. All trademarks used belong to is an affiliate website and promote We are getting a commission when trader registers through our links.

We strive for all the information be most up to date but for the current offers always check IQ OPTION official website. If you would like to contact with the webmaster of this website please email:[email protected]

Automatic articles translation

The articles are originally in English. Please change the language if trading articles are not translated well. They are translated automatically and may not always reflect the meaning of the original content.

We use cookies to provide and improve our services. By using our site, you consent to cookies. To find out more please read our policies below:

© 2024 - IQ OPTION BROKER - not official | Promotional material on this website is 18+ only. Please trade responsibly.