HomeHow to draw Support and Resitance lines?Easy guide on How to draw and trade Support and Resistance levels...

Easy guide on How to draw and trade Support and Resistance levels on Olymp Trade

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(Last Updated On: June 27, 2022)

Support and Resistance is one of the most popular and accurate price lines drawn by traders to identify the possible buy and sell signals.

Understanding and trading via Support and resistance level on Olymp Trade is very easy you just need to remember some quick easy rules that I am going to discuss in this article.

What is Support and Resistance levels

 

 

Support is the price level that acts as a friend for the buyers and helps the buyers by stopping the price to go down any further.

The support level is the price level at which the price of the stock and commodity does not fall any further.

According to this concept the moment the price touches the support level the price will bounce back up in the support of buyers.

However, If due to any market reasons if the price breaks the support level then it is preassumed that the price will be dominated by sellers until the next support level.

 

Similarly, Resistance is the price level that acts as a friend for the sellers who the sellers by stopping the price to go up any further.

The resistance level is the price level at which the price of the stock and commodity does not go up any further.

According to this concept, the moment the price touches the Resistance level the price will bounce back down in the support of sellers.

However,  If due to any market reasons if the price breaks the resistance level then it is preassumed that the price will be dominated by buyers until the next resistance level.

 

How to find Support and Resistance Levels on Olymp Trade

Drawing Support and Resistance levels is very easy. Here, to illustrate the concept I am going to use Olymp Trade. You can also create a practice account on the same.

Once you sign up you will land on the Olymp Trade dashboard.
Firstly, click on the indicator button.

 

Select a horizontal line from the menu.

 

Now, what you need to do is find two highs for resistance level and place the horizontal line at the same.

 

 Similarly, Find two lows for the support level and place a horizontal line at the same.

How to trade with Support and Resistance on Olymp Trade

Trading with Support and Resistance is damn very easy.
Let’s check some examples
 

 

See, at point number 1, The moment the price touches the resistance level we see a huge downfall in price level hence here, we can take a bulk SELL trade.
Similarly, at point number 2, The moment the price touches the support level we see the price bounce back up and here we can take bulk BUY trade.
 

 

Summary:

Support and Resistance is one of the most popular methods used by traders to identify the possible buy and sell calls.

 Summing up everything, What you first need to do is find two highs for resistance level. Similarly, find two lows for support level.
Once you have spotted the support and resistance level just remember this golden rule.
If the price of the stock, or commodity touches the resistance level the price will bounce back down. Therefore, here we should take here a SELL trade.
 
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Similarly, If the price of the stock or commodity touches the support level the price will bounce back up. Therefore, here we should take here a BUY trade.
So, this is the end of this article. I hope you have found this article helpful. Now, Go and try this trading strategy on Olymp Trade and share your experience via the comment given below.
 

 

 

 
 
 
 

 

 

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