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Many traders enter a trade and then watch price reverse straight away.

Daily trading lesson

Many traders enter a trade and then watch price reverse straight away.

By Alan Solarsh · 4 November 2026

Many traders enter a trade and then watch price reverse straight away. They often have no clear reason for picking that spot on the chart.

Look at your chart and find a price where it stopped three times. Draw a line there, because price often responds again near a level where it reacted before. A floor under price is called support, and a ceiling above price is called resistance.

Pros: It gives you a clear spot to watch instead of guessing. It also helps you plan where you would be proved wrong.

Cons: A level that held before can still break, so it does not predict price. It also takes patience, because you may wait a long time for price to return.

I use the Learn to Read a Forex Chart course because it shows where price stalls.

If you want to learn how to do this, start here: https://learntoreadaforexchart.com/?utm_source=social&utm_medium=l2r-own&utm_campaign=l2r-lesson-7

Forex trading carries risk.

If you want to learn how to do this, this is the tool I use: https://learntoreadaforexchart.com/

First published on Discord (Discord #?alan-chart-analysis), Facebook (Learn To Read A Forex Chart Using Candlesticks & Moving Averages). Forex trading carries risk.

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