How to locate Support and Resistance

How do you locate areas of high resistance and support ? This is a question on many traders minds and several traders find this very difficult to understand as well as locate. One way of looking at SR regions is that it is a price range where the buyers and sellers are almost equal and the entity or the pair that is being traded is getting exchanged between the buyers and the sellers within a narrow price range. Why does this happen ? If and when we are in an uptrend, it simply means that the demand is more than the supply. The buyers easily outnumber the sellers and hence price increases without any major opposition from the sellers. But during this, there will be a price range where the sellers will be waiting and when price approaches this range, the buyers are met with lot of sellers. So the buyers keep buying but the sellers also keep selling whatever and howmuchever the buyer wants and hence the price does not move much at all. This is the place of SR (Support/Resistance).

How do you locate this ? Open any chart with any time frame.Please note that SR regions can be seen in any TF right from 1 minute to a monthly chart. So, open any chart in any TF and look for places in the chart where there is stalling of price. As pointed above, when buyers and sellers are equal, the price does not change and so the price ranges where you see that the price is stalling would be the SR regions. You can see that in all pairs and all charts easily. Of course, you can find those using Fibs and MM as well but even without any of these, just by having a look at the charts, you should be easily be able to find SR regions.

You can catch me on twitter (http://twitter.com/ns_karthik) where i share some of my trade calls as well !!

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