Master the art of drawing Support and Resistance on Deriv

Support and Resistance is the heart and soul of trading. If you really want to succeed in the field of trading. Understanding the concept of Support and Resistance is compulsory.

I personally believe that Support and Resistance is the ABCs of trading and understanding and knowing how to draw Support and Resistance on Deriv can be a game changer.

Key Points About Support and Resistance on Deriv

  • Support and Resistance is the technical analysis concept that displays the strength of buyers and sellers. These are the price levels at which the buying and selling pressure is so high that it can halt the movement of asset prices.

 

  • Support is the price level which displays the strength of the buyers. It is the price level where the buying pressure is so high that it can reverse the current selling trend.

 

  • Vice versa, Resistance is the price level which displays the strength of the sellers. It is the price level which displays that the selling pressure by the sellers is so high that it can reverse the current bullish trend.

 

Identifying Support and Resistance Levels

Support and Resistance on Deriv

Identifying Support and Resistance levels is an easy job. Firstly, you need need to look for the two lows (red and green candles) at the same distance which is our Support level and vice versa, Spot two highs of green and red candles at the same distance for resistance level.

Drawing Support and Resistance Levels on Deriv

Deriv trading platform offers numerous tools and accessories to draw high-quality Support and Resistance Levels such as.

 

Support and Resistance Levels on Deriv

Horizontal Line: Once you have spotted the Support and Resistance Levels in the price chart. You need to place a Horizontal line above or below the same. Find the Horizontal from the tools section. Now, place the Horizontal line below the lows for a Support level and vice versa, Place the Horizontal line above the two highs for the Resistance level.

 

Support and Resistance Levels on Deriv

Trend Line: The other way via which you can draw the Support and Resistance levels are trend line. To set a trend line click on the tools button and search for the trend line. Now, similarly, find two lows and stretch the line accordingly.