Support and Resistance Basics (FX Academy)

In this course, we introduce some basic technical analysis that helps a trader decide when to place a trade. We start off with how to determine reward/risk ratios prior to trade entery. We will discuss the concepts of support and resistance and what they mean to the trader. We will be introducing some simple charts which indicate the support and resistance levels of a particular currency pair. We will talk about entry and exit limit orders, as well as stop loss orders. In our lesson on long and short trades, we will review the concepts of long and short positions, and how to use them to enter and exit a trade profitably. This course will also include a further lesson on reading Japanese candlesticks and what the candle shapes and wicks on these charts can tell the Forex trader about market sentiment.

Suggested Readings:
http://www.investopedia.com/articles/technical/061801.asp
http://www.dailyforex.com/forex-articles/2012/01/When-to-Take-Profits/10271
http://www.investopedia.com/articles/stocks/11/calculating-risk-reward.asp