Term

Support

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Support in Forex can be identified as an area or level at which price could possibly turn upwards. Using support is one trading methodology for picking buy entries.

When price turns away from a certain price level more than twice it is deemed as a significant support level. In most scenarios support levels are watched by Buyers in the market.

Resistance however acts as the ceiling for price of which price cannot go higher. If resistance is broken and price moves higher, price often come back to retest that same resistance level as support. When the aforementioned occurs its called a "role reversal' of what was resistance that is now future support.

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