Support and resistance levels are one of the most important concepts in Forex trading. Many technical tools rely on support and resistance lines to find or to confirm trade setups, and they are probably one of the first tools that new traders learn in trading. Support and resistance levels can come in various forms, and there are even complete trading strategies which rely purely on these levels. Given the importance of this topic, we prepared a detailed article which covers everything you need to know about it and shows how to calculate support and resistance levels in Forex.

While Forex is an exciting and lucrative financial market, many traders face difficulties when trying to make steady profits and grow their trading account. In fact, most beginners on the market blow their first trading account in a few weeks because they lack the understanding of basic trading concepts and don’t pay too much attention to risk management.

To trade on a financial market, you need capital. Capital is used to buy an instrument if your analysis shows that its price could increase in value, eventually leading to capital gains and a profit for the trader. The Forex market is no different – in order to start trading currencies, you need to invest a certain sum of money with your broker which is then used to buy and sell currencies. The amount invested has a direct impact on the amount of profits you can make, as larger trading accounts can open larger position sizes than smaller trading accounts (given the same amount of leverage).

Even if you’re new to Forex trading, you may have noticed that following the price charts of currency pairs is extremely important. Charts show the movements of currencies in a graphically appealing way, and traders use these charts to apply various technical tools in order to anticipate future price movements.