Support and Resistance Levels

Trade Using Support and Resistance Levels

resistance levelsThe prices of financial instruments move based on supply and demand.  When investors believe the value of an asset is low relative to expectations, they will purchase it in the hope that it will eventually move higher.  Pent up demand for an asset will generate price stability and eventually pinpoint a price level in which market participants will buy that asset.  Levels of demand for a financial instrument are referred to as support levels.  When prices have difficulty moving lower, levels that reject further downward pressure are referred to as support.  Support and resistance levels are a widely used by many financial institutions in determining future price movements.

Support levels may be measured by prices, along with other metrics such as trend lines, moving averages and other technical indicators such as Bollinger Bands™.

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easyMarkets

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

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