More than months back when I started to read about forex trading, I came to know about the support and resistance level in the chart. At that time I thought that, how can I know, which is support level and which one is resistance. I started to think that, I will need a guide always to point out those levels for me. With the thought in mind, I just started to ignore finding these levels.
Later I started demo trading 1 and 1/2 months back. Very recently while I was demo trading and trying to find out the chart patterns, suddenly I've found that, I started to see those horizontal support and resistance levels. So see the levels in my eyes--
See the top line is acting as a resistance level where the upward price movement bounces off. The middle line was acting as a support line where suddenly price broke down and the support line became resistance line and bottom line became the support line.....
This is what I understood. Now, please comment, whether I'm right or not...
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