It is always advised by the experts that one must understand the working of the Forex market before actually jumping into the Forex trading. One can learn the theoretical part of the Forex trading but actual learning comes with the experience. When you start Forex trading you will learn the different strategies, key factors of market, ways to increase you profitable trading and so on. An intermediate grabs the good level of knowledge on Forex trading and hence he is able to understand the support and resistance levels. S / R levels or support and resistance levels are the two levels on the charts of Forex trading. These are considered as one of the financial tools that sounds your Forex trading.

Actually S / R level is a ratio of battle between the seller and the buyer that attempt their market expectation to turn it wisely into a huge profit. In practice, S / R levels are modulated by the big investors/traders who have the potential to drive the direction of the Forex market. So is this analytical tool helpful? The answer is yes, it is helpful but the technical analysts suggest that one must avoid the initiation of positions based on the S / R levels. He must wait for the change of the direction and then plan a sincere move.

Brokers try to fool investor with their S / R level findings on the chart with beautiful presentation of the data but what happens behind the scene, we have already seen. You may also have heard the terms like “one touch” barrier or “double no touch” barrier; these are nothing but the types of gambling the “digital options”. A Forex broker may ask you to bet on the digital options. If you bet on the currency rates and your prediction follows the same flow in the Forex market for a specified period of time then he will pay you a fixed amount of money in line with odds of success. To understand this let us take an example. Suppose you bet the broker that USD/INR will not increase by 1.2300 rate for next one week and if this prediction gets true then you will be paid for success in line with the odds of the bet that you last week.

Remember the human nature to simply things for its own sake. The same way the S / R levels become predictable at any Forex chart. Therefore an intermediate trader can easily predict the reality behind the S/R level and plan his Forex trade based on that.

Trend lines are again a good Forex trading tool. They are result of the formation of S/R levels and hence can best used wisely to plan your trade.