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Forex Trading support or resistance level been around for
avatar Fxcarebear
Question by: Fxcarebear - 15 Oct 2015, 12:03:15
support or resistance level been around for
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Answers (1)
avatar user 7838
Answer by: Pipmaster - 15 Oct 2015, 12:06:49

There are varying theories on this, but my belief is that support and resistance levels are useful because so many traders look at them to determine where to place their stop and limit orders. This means there can be a concentration of buy orders around a support level which could stop the market from trading lower. As long a support level hasn't been broken, it will tend to attract a concentration of buy orders, even if it is an old level, perhaps especially because it's an old level that hasn't been broken in years.

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