When traders metformin hcl 1000 mg learn about technical analysis, the very first thing we learn is normally support and resistance. However, very few people actually understand what is really going on. Although not vital to your trading, understanding the mechanics of support and resistance can greatly help you in various circumstances. The fact is, there is simply more to it than some magic line that holds prices up or down. Unfortunately, many traders get burnt by treating it as such, and in this video, I try to explain why support or resistance rarely holds at one specific level. These areas are just that – areas, and they tend to be a bit wide. This is why we wait for candle confirmations such as a hammer or engulfing candle to place our trades – it lets us know what is going on in the underlying market.

Remember that these videos are in HD, so feel free to watch them in full screen mode, although this one is written so it is fine either way!