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The surprising thing about support and  Resistance is that they can be very effective. The disappointing thing about support and resistance is that they are subjective and MUST be rigorously back tested. Since they are so subjective, how you can begin learning to use them? Simply start! Just get a chart and start drawing lines.
The MoneyTrek Feature in the ForeXecutor is a great tool for this. Simple to use and effective at getting you to learn good support and resistance strategies, consistent use of Money Trek will make a difference in your trading. Here are some screen shots of how to use the Money Trek for support and resistance practice.
Here is a series of support and resistance lines I drew as the chart progressed.
After doing this a few hundred times you will find that you are getting better at identifying these areas. This chart alone has 11 lines drawn on it and it took me less than 5 minutes to create them. The next step is to try and identify what will happen at these points. This is when you will really start putting the pieces of the puzzle together.
Though it doesn’t really matter, I did not know this was going to happen. I didn’t forward through the chart and then come back and do it. I was doing this in Money Trek.
Just keep doing this over and over and over and over and over….well you get the idea.
Will this trade go down and test the bottom line after falling away from the support turned resistance?
Nope.
This area has failed twice before and the gentle rising resistance line created a quick trun around in price action. Will price fall to solidify the old support as new support?
It did. SO now I am going to want to remember this type of trade and look for more and even print this one out so I can review it from time to time.
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ForeXecutor