THIS HUB CONTAINS THE FOLLOWING SUBJECTS, IN ORDER:

SHORT TERM SUPPORT AND RESISTANCE MONITORING

LONG TERM SUPPORT AND RESISTANCE MONITORING

SETTING PRICE ALARMS TO MONITOR FOR PRICE MOVEMENT

PRICE SPIKES

REPETITIVE NATURE OF SUPPORT AND RESISTANCE

STRADDLE ALARMS

WHAT TO DO WHEN THE PRICE ALARMS GO OFF

LAYERS, ZONES, AND CLUSTERS OF SUPPORT AND RESISTANCE

FOREX SUPPORT AND RESISTANCE TECHNICAL PAPER

FOREX SUPPORT AND RESISTANCE AUDIO TRAINING

FOREX SUPPORT AND RESISTANCE SLIDE SHOW

SUMMARY AND CONCLUSIONS

ABOUT THE AUTHOR OF THIS LENSE

CHART SHOWING INTRADAY SUPPORT ON THE GBP/USD

The forex market is a support and resistance market, all trends start and end at support and resistance. All reversals and retracements start at support and resistance. Forex trading becomes alot easier if you are an expert in this area.

Forex price alarms are also free on a piece of forex trading software known as metatrader. You can set multiple alarms on multiple pairs and always be monitoring the forex for price movement at no cost.

Trend indicators work a certain way and you must learn to think like trend indicators work. There are trend indicators you can use every day like exponential moving averages that work extremely well and will help you to learn forex.

These are price related indicators but are historically and exponentially weighted with the near term pricing support and resistance carrying more weight.

Historical data is accounted for in charts and exponential moving averages work in a similar fashion with natural heavier weighting of data to the right side of the chart.

If near term support and resistance is compared to longer term support and resistance on these indicators we use then we need to divide support and resistance into short term support and resistance and and long term support and resistance.

For analysis of the forex market we use multiple timeframe analysis with forex charts, which is the same way we analyze support and resistance, across different timeframes.

Monitoring Short Term Support and Resistance

If a currency pair is trending you can use price alarms to monitor for breakouts of the short term support or resistance established over the last 18 hours for trade entries.

To monitor short term support and resistance set up these free trend indicators which are available on a piece of trading software called metatrader. The link to the free trend indicators is as the bottom of this hub.

Set up these forex charts on a metatrader platform and check the M5 and M15 minute charts when the pairs are consolidating. Write down the numbers and this is the short term support and resistance. You can also call this intraday support and resistance because it has been established in the last 12-18 hours.

The chart you can see above this text is an M15 chart showing intraday support on the GBP/USD, just set your price alarm immediately below the support established on the right side of the chart.

CHART SHOWING INTERMEDIATE TO LONG TERM SUPPORT ON THE CHF/JPY AT 76.00 TO 76.15

To monitor long term support and resistance to assist with your forex trading set up the free trend indicators, link is provided below.. But now you need to check the support and resistance on the longer timeframes like the H4, D1 and W1 charts. Check out the longer term term support and resistance when the pairs are consolidating. Write down the long term numbers and compare to short term support or resistance numbers. Not exactly too difficult and you will learn forex as it relates to all of the support and resistance numbers on the market..

This chart shows intermediate to long term support (D1) chart on the CHF/JPY at about 76.00 to 76.15. Very easy to spot.

HOW TO SET UP PRICE ALARMS ON THE FOREX TRADING SOFTWARE KNOWN AS METATRADER

If you decide to set a price alarm off of short term support or resistance be sure to check the long term support and resistance. In the GBP/USD screenshot you would set the price alarm below the intraday support on the right side of the chart if the GBP/USD was in a downtrend. See how much room there is in between the short term support versus long term support numbers. If the numbers are too close then set your alarm off of the long term support numbers, its just not worth it to try to trade this pair otherwise. In other words if the numbers are close to each other its best to set price alarms outside the long term support or resistance so you have more pip potential on your forex trading..

Sometimes the short term support or resistance match up evenly with the longer term support and resistance and the numbers may match up quite well. If this is the case any breakouts can produce strong new uptrends or downtrends.

On the chart of the CHF/JPY above you could set a price alarm at 76.00 for a potential break of support but as you can see it looks like it has held the support nicely over a long period of time.

In this module there is also a photograph of how to set price alarms from a metatrader platform on any forex pair. Monitoring pairs with price alarms will help you to learn forex.

A price spike is generally not too important when analyzing forex support and resistance. Price spikes can happen around forex news events that you can find on forex news calendars. Trend indicators are more sensitive to areas of support and resistance than price spikes, which are somewhat meaningless to trend indicators. Price spikes are quick jumps of drops in price that quickly recover.

Support and resistance matters to the trend indicators you would use to analyze the market, because the indicators you see in this lense are price based. All trends start and end at support and resistance. Learning to identify spikes will also help you to learn forex.

Almost all trend indicators treat spikes as insignificant compared to areas of support and resistance which are very significant. Same thing for equivalent trend indicators which tend to smooth data like the ones you see in this lense.

Since most teend indicators including exponential moving averages pictured here all have historical weighting of price built in to their formulas and algorithms they both "see" all of the historical price data especially recent price data because the algorithms are historically weighted on these indicators.

The indicators shown when the green line converges on the H4 and D1 charts this is an indication of a currency pair stalling at longer term support and resistance. This is why the D1 chart on these free trend indicators matches up so well with most other trend indicators. Convergences of the green line occur when the price stalls on the various timeframes and is somewhat obvious on the charts.

This is because as we said, all trends start and end at support and resistance.

Photo of the GBP/JPY OSCILLATING IN A 300 PIP RANGE

Spot forex support and resistance numbers are repetitive on ranging or oscillating pairs, they are also repetitive on long term support and resistance numbers over months and years. Its clear on the charts.

Oscillating Currency Pairs

Some currency pairs are not trending, they are oscillating or ranging up and down between support and resistance as in the example above. Major currency pairs and exotics pairs can do this and they do this all of the time. Support and resistance numbers are repetitive on ranging pairs.

Setting up this forex trading software and trend indicators and setting price alarms will help you to learn forex and greatly assist with your forex trading, you will always know when the forex is moving.

STRADDLE ALARM ON THE USD/CAD ON THIS FOREX CHART

Sometimes currency pairs are moving sideways in a tight price range, in this case you can set a straddle alarm. A straddle alarm is two price alarms on the same pair, one is above the tight trading range, one is below the tight trading range. Resistance alarm and support alarm set simultaneously.

In this case after a thorough analysis of the CAD and USD groups using multiple timeframe analysis it was unclear what direction the USD/CAD would go so a straddle alarm was set. The reason you set two price alarms of the same pair is that you just dont know what direction the pair will go based on your overall assessment of the market.

In this case it hit the support alarm and a forex trading entry was verified to sell the EUR/CAD based on CAD strength using the Forex Heatmap (tm) which is described in a different module in this lense. Remember that this forex trading software and charting package is free, and so are the alarms and indicators.

It Could Be Time To Trade !!!!!

THIS IS A VISUAL MAP OF THE SPOT FOREX THAT VERIFIES YOUR ENTRY DECISIONS CALLED THE FOREX HEATMAP (tm)

So now you know hot to set up price alarms and monitor the spot forex pairs for movement using these forex charts. You are now monitoring one or more pairs with price alarms. The London session starts and the heaviest period of market activity is starting including alot of the forex news.

At some point one or more of your price alarms hits and will go off and you get in front of the computer to see if you should enter a trade.

Price alarms will tell you that the market is moving but you still need to verify your entries, a new tool is now available for entry management and verifying entry decisions that most forex traders have never seen, its called the Forex Heatmap (tm)

It tells you at a glance what pairs or strong or weak and verifies whether or not you should enter the pair where support and resistance is broken, Or it could possibly identify an entry on another pair in the same parallel or inverse group. Price alarms detect price movement but it could be a price spike or fakeout (as discussed in the module above). You need to verify your forex trade entries.

To use this tool effectively you need a step by step guide to using it. There is a link to this guide on the bottom of this module.

Reading the Forex Heatmap (tm) is not difficult. For different heatmap configurations you can quickly and at a glance see the pockets of strength and weakness on the spot forex and get your trade platform ready when the configurations are set. A complete library of configurations showing buys and sell signals is in a link at the bottom of this module. Forex trading just got alot easier using this web based forex software. You can learn forex entries and safety with this tool.

If you need a step by step guide to using The Forex Heatmap (tm) it is at the bottom of this hub. A library of entry signals for various currency pairs is also included at the bottom of this hub for using with this tool.

THIS FOREX CHART SHOWS A CURRENCY PAIR STUCK IN A CLUSTER ON THE BOTTOM RIGHT, IT ALSO SHOWS A DOUBLE BOTTOM AT AROUND 1.5950

Sometime a pair is stuck in a broad range and the trend charts indicate choppiness. This means that the pair is bouncing up and down in a fairly wide price range and is incredibly difficult to trade. The market is not always trending or oscillating in some beautiful smooth pattern. Trading a market like this is riskier and the incidence of stopouts is more frequent. Trade durations are shorter and movement cycles typically last only through one London-USD trading session and then you would exit trades..This is easy to recognize just look at the charts but most forex traders dont understand this concept at all but if they did their forex trading would improve. If you want to learn forex try to take this concept forward.

Layers of support or resistance are also referred to as choppy market, tight range, clusters, layers of support and resistance, etc.

On this module i have one example of a support cluster, Its best not to trade until the price breaks out of the cluster then it will be able to move much easier and larger trends will form. Price alarms should be set on both sides of the cluster at resistance and support looking for a clear shot at pips. The chart shown above is an H4 chart on our free indicators on the metatrader forex trading software.

Forex Support and Resistance Technical Paper

Effective Use of Price Alarms

This technical paper was originally written by Mark Mc Donnell and has been slightly modified for this squdoo lense.

The spot forex is a support and resistance market. Period. Whatever tools and indicators you are using to trade the spot forex market, the experience can be greatly enhanced by understanding near term support and resistance along with longer term support and resistance numbers for the currency pairs of interest.

Every spot forex trader and the major institutions are watching critical areas of support and resistance on the various pairs. If any major pair breaks through a critical support or resistance number it makes news everywhere on the forex newswires or on national and global news shows.

Support and resistance is somewhat repetitive, the major support and resistance numbers tend to repeat themselves over time as the pairs range or trend up and down.

Monitoring the critical areas of short term or long term support and resistance on the spot forex is easy using price alarms. You can use desktop alarms, alarms to wireless devices, or email alerts when prices are breached. Make sure your broker of choice gives you the ability to set price alarms and alerts. They should also provide them for free on their trading platforms.

Price alarms can be used for the various needs of a trader.

If a currency pair is currently trending price alarms can be used to notify the trader when the trend is resuming so you can intercept the movement. Another use is to set price alarms at specific support or resistance prices where the indicators can be reevaluated for profit taking. This assists with money management.

Another use is for setting price alarms where double tops and double bottoms can occur, the double tops and double bottoms occur frequently on the spot forex and can represent entry points into complete reversals after large sell-offs or up cycles.

Price alarms can also be set to alert a trader when a pair is going in your favor so you can reset your stops up or down to improve your money management or entry management. Price alarms can also be set on top of partial limit orders or entry orders to notify the trader that an order was executed.

Also if a currency pair is not trending but trading in a narrow range a straddle alarm can be used to assist in to determining a breakout of the current range.

In conclusion the spot forex market knows where these critical short term and long term support and resistance numbers are, the other traders know where these numbers are, and the institutions also know, this means you should know too, don't waste time staring at the forex all night. Monitor the market with price alarms and go on about your business, get a lot more sleep and still be in the know as to when your favorite pairs are moving.

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Audio Training Library

This module contains the location of  a comprehensive forex audio training library. Within this audio library of 16 audios is an audio on support and resistance you should listen to to supplement the information in this hub. When you find it just click and play and there is a slideshow that goes with it.

To access the Audio Training Library go to the "Forexearlywarning" website, then click on "FEW Education" tab across the top. Slide down this page to the Forex Audio Training Library and link up there.

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Forex Support and Resistance Slide Show and Additional Support and Resistance Resources

This module has a complete library of slides that you can view on Flickr, It demonstrates many examples of short term and long term support support and resistance and clusters, also double tops and bottoms and how to set price alarms. Click on this link for this valuable information.

http://www.flickr.com/photos/23382434@N06/

Look on the upper right and there is a faint "Slideshow" button to put the slideshow into motion, also examine each individual slide carefully.

Throughout this hub we have referenced a set of free trend indicators and price alarms, in order to set these free trend indicators go the website "Forexearlywarning". On the right side of the page about 3 paragraphs down click on the link to "free forex trend indicators". This is a complete set of instructions for setting up the free trend indicators, price alarms, and metatrader charts that you see throughout this hub.

The Forex Heatmap (tm) also has a complete guide to use for managing entries, the link to this valuable resource can also be easily be found on the web. Just go to Google and type in "Forex Heatmap Educational Blog" into the google search engine and when the search results come back it should be the top entry.

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