Category: 1. Support & Resistance Levels

In the previous lessons, you learned about trading support and resistance. Let’s review what you’ve learned. When the price moves up and then pulls back, the highest point reached before it pulls back is now resistance. As the price continues up again, the lowest point reached before it climbs back up is now support. Support and Resistance are Zones… Continue reading Summary: Trading Support and Resistance

Now that you know the basics of how to trade support and resistance, it’s time to apply these basic but extremely useful technical tools in your trading. Because here at BabyPips.com we want to make things easy to understand, we have divided how to trade support and resistance levels into two simple ideas: the Bounce and the Break. The… Continue reading How to Trade Support and Resistance

If we take this trend line theory one step further and draw a parallel line at the same angle of the uptrend or downtrend, we will have created a “channel”. No, we’re not talking about ESPN, National Geographic Channel, or Cartoon Network. These channels aren’t television channels, they’re trend channels, sometimes also called price channels. Still, this doesn’t… Continue reading Trend Channels

Trend lines are probably the most common form of technical analysis in forex trading. They are probably one of the most underutilized ones as well. If drawn correctly, they can be as accurate as any other method. Unfortunately, most forex traders don’t draw them correctly or try to make the line fit the market instead of the other way… Continue reading Trend Lines

“Support and resistance” is one of the most widely used concepts in trading. Strangely enough, everyone seems to have their own idea of how you should measure support and resistance. Let’s take a look at the basics first. Look at the diagram above. As you can see, this zigzag pattern is making its way up (a… Continue reading What is Support and Resistance?