Moving average plus support/resistance: the classic combination
A moving average plus a key level: the MA supplies the trend context, the level supplies the trade. When price reaches a level in the direction of the MA, the setup is on.
What's your version?
- the MA and levels you combine
- how you resolve conflicts between them
- the trade this combo produces most reliably
The moving averages guide and support and resistance guide are the two ingredients.
Background: Support and resistance: how traders mark price levels
Support and resistance are the most widely used ideas in chart reading. How to find levels, why they work as zones, and what happens when they break.
What is support and resistance in forex?
Support is a price area where falling prices have tended to stop, and resistance is an area where rising prices have tended to stall, often because many orders cluster there.
What happens when support breaks?
The price often falls further, and the old support level frequently acts as resistance if the price comes back up to it.
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