• Supports and Resistances
  • Identifying Levels
  • Standard Pivot Points
  • Usage of Pivot Points
  • Other Pivot Points

Supports and Resistances

Establishing Supports and Resistances

  • Points where supply and demand meet
  • A support level may prevent a further decline
  • A resistance level may prevent the price from rising further
  • Areas to look for potential buy and sell signals
  • Previous tops and bottoms
  • Supports are the levels below the current market price
  • Resistances are the levels above the current market price

Supports and Resistances Changing Roles

  • A broken resistance can turn into a support
  • Previous resistances represent potential support levels
  • A broken support can turn into a resistance
  • Previous supports represent potential resistance levels

Supports and Resistances – Tops and Bottoms

  • First choose a timeframe you would like to trade
  • Mark the ATH (All Time High) and the ATL (All Time Low)
  • Mark all previous tops and previous bottoms
  • Cluster of levels make the zone more significant

Supports and Resistances – Moving Averages

  • Moving averages provide support and resistance
  • Add the EMA 20 and the EMA 55
  • Mark the averages with horizontal lines

Supports and Resistances – Significance

  • Supports are levels below the market price
  • Resistances are levels above the market price
  • Cluster of levels make the zone more significant

Supports and Resistances in a Range

  • In a range, we only have two important levels
  • The top of the range
  • The bottom of the range

Pivot Points

  • Standard pivot
  • Demark pivot
  • Fibonacci pivot

Pivot Points Calculation

  • Estimated using prior high, low and close price of  a higher timeframe
  • For Intraday charts, use prior day high, low, close
  • For medium term charts, use prior week high, low, close
  • For long term charts, use prior month high, low, close

Standard Pivot Points 

  • Resistance 2 (R2)     =     P + (High – Low)
  • Resistance 1 (R1)    =     (P x 2) – Low
  • Support 1 (S1)     =     (P x 2) – High
  • Support 2 (S2)     =     P – (High – Low)

Other Pivot Points

  • Fibonacci and Demark Pivot Points
  • Fibonacci main pivot is derived in the same way as the standard pivot point
  • Supports and resistances are calculated using Fibonacci ratios 0.382 and 0.618
  • Demark Points have a different base and are conditional on the relationship between the close and the open


The Story of Desmond Leong

Desmond is your average trader. He started off blowing up 7 (or more.. lost count) accounts amounting to more than 500k, tested over 30 Expert Advisors (EAs) to no success and spent over 10k on stupid useless courses.

Today he runs an award winning trading team and provides market analysis and webinars to some of the largest brokers such as IC Markets, XM, Axi, Tickmill, FXCM, VantageFX, easyMarkets and more.

He now has a simple goal: Creating an army of traders who trade profitably together and keep each other accountable. Guiding them with the most comprehensive no-BS free tutorials so that no one ever needs to go through the pain he went through himself to become a profitable trader.

My Trading Strategy


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Trading in foreign exchange (“Forex”) on margins entails high risk and is not suitable for all investors. Past performance is not an indication of future results. In this case, as well, the high degree of leverage can act both against you and for you. Before you decide to invest in foreign exchange, you should carefully assess your investment objectives, experience, financial possibilities and willingness to take risks. There is a possibility that you will lose your initial investment partially or completely. Therefore, you should not invest any funds that you cannot afford to completely lose in a worst-case scenario. You should also be aware of all the risks associated with foreign exchange trading and contact an independent financial advisor in case of doubt.

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.

Leverage enables traders, using a relatively small amount of money, to take a position that is many times the initial investment. This leverage effect can work both in your favour and to your detriment. The Forex market opens up the possibility to utilize this leverage effect to a high degree; at the same time, however, it also opens up the risk of experiencing high losses. Please trade with caution when you use leverage in trading or investing. Your risk is particularly not limited to the initial investment, but can quickly fall into a negative range in the event of strong movements, meaning you may be obligated to pay far more than your initial wager.