Moving Averages acting as Support & Resistance

December 3rd, 2007 expert Posted in FOREX TRADING ENTRY STRATEGIES |

Online Forex Trading concepts: Moving averages creating support and resistance

Moving averages can sometimes act a good support and resistance areas. The 200, 100 and 50 moving averages on the daily charts are of particular importance as these are watched by the bigger Forex market participants. It is always a good idea to have the on your daily charts. When these moving averages converge there is a very good chance of a huge volatility breakout.

Below is a good example of a moving average acting as support and resistance.

moving-averages-s-r.gif

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