Support resistance and trend
Support and resistance are the price levels where a market has repeatedly stopped and reversed — together with the trend, they're the foundation of technical analysis.
Support and resistance
Support is a level where falling prices tend to bounce (buyers step in); resistance is a level where rising prices tend to stall (sellers step in). Traders watch these levels for entries and for placing stops.
Identifying the trend
An uptrend makes higher highs and higher lows; a downtrend makes lower highs and lower lows. "The trend is your friend" — trading with it is generally safer than fighting it.
Breakouts and reversals
When price breaks decisively through support or resistance it often continues (a breakout); when it fails and turns, that's a reversal.
How signals use these levels
FxErvin entries, stops and targets are placed with support, resistance and trend in mind — so even while you're learning to read charts, you're trading levels that matter. See how to read a signal.