Support and Resistance is the basis of most technical analysis chart patterns whether you trade forex, commodity futures, options or stocks. Yes Virginia, you really do need to be able to recognize it if you want a low risk, sensible way to trade based on what you see in the charts. Areas of price congestion that create many well known chart formations are nothing more than levels of Support or Resistance.
In fact, just about every technical trading system or method uses Support and Resistance, whether their authors admit it or not!
This is not a new fangled, latest flavor of the month trading system at all...Support and Resistance has been around since before Jesse Livermore was but a twinkle in his daddy's eye.
It's not exactly rocket science to identify Support and Resistance, and it can be applied to any market: stocks, commodity futures and options, spread trading, forex, ETF's and single stock futures too. That's the good news.
The bad news is that there's a lot of "tip of the iceberg" canned information out there that's just plain inadequate. You're going to have to put in some time getting a "feel" for Support and Resistance on your charts. The cool thing about Support and Resistance is that with a bit of practice you can see it clearly on any type of chart, so there's no need to make a life-altering decision. The keyword here is practice.
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