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How to Use the Levels of Support and Resistance Tools in IQ Options

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In addition to using indexing tools to analyze market data and then make buying and selling decisions, traders can use other simple signals to analyze the initial its private. One of them is to use the support and resistance level to analyze the price chart in the market.

Risk Warning: Your capital may be at risk. This document is not always accurate so it is not an advice for investors

Concept of Support and Resistance

Support and Resistance Levels are very important levels in the price chart of assets – especially in transactions where prices are recovering, deals are likely to explode or reversed. . This is one of the most common methods for selecting market entries.

The support and resistance lines on the chart are the clearest technical indicators clear and clear. You should consult and use this tool, as many investors and traders around the world are relying on them for their deals.

Warning: Trading options can cause your financial risk to be taken into account when deciding to participate.


The support level and the resistance line on the chart

You can draw lines of support and resistance on any type of chart: bar form, candlestick type, area type, line type, etc. But candlestick or bar charts will help This road is clearly visible.


Support levels and resistance levels help traders calculate where they are appropriate to buy assets at discounted prices, and when prices will rise again.

What does support and resistance mean?

As can be seen, the support and resistance levels directly reflect the peaks and troughs of the price chart. Prices at these peaks and troughs are always the basis of trade. They reflect the fundamentals of the financial market – the rules of supply and demand. Resistance and support formed on the chart, because investors consider the prices have been achieved in the market over time. They do not want to risk, and they want a safe level to get rid of their current position.

Traders use subtle support and resistance levels, both in the case of a rebound and a breakout.


When a price recovers the level it has achieved in the past; It is very likely that it will recover that price again, and form a price channel.


An entry point market

Next, the next figure shows us the price fluctuation in the same plane with very definite limits. The upper limit of the plane – is the level of resistance on the market, and the lower limit is SUPPORT.

The first point in which an effective buy is that where the price rebounds from the support level – and gains the opposite margin line.

Similarly, the first point may be SELL is the price point rebound from the upper resistance level, the profit received from the support level.

In addition to horizontal support and resistance levels, there are also support and resistance lines that are called TRENDS.


Trend lines and support levels form a triangle

Trend lines show volatility trends. They are constructed using maximum values with decreasing trends and minimum values with increasing tendencies.

Patterns using horizontal lines are considered to be very effective for trending trades.


Horizontal and support levels

Resistance after a break may be good, support for future prices. Ỏ the above picture, the arrow pointing to the BUYER entry. This entry is based on a trend-reversal of the resistance.

If the resistance lines are stronger and the price breaks above the support level, investors will use the price-based model to break the support and resistance levels.


The breakout of the support and resistance levels is a great opportunity for traders to grasp the “momentum” of the price. This method is harder than the first method, because investors have to look at and monitor the market continuously, so as not to miss an entry point. Many investors want to take advantage of the breakout price, but do not enter the order immediately, waiting for the rebound after breaking the price before making an entry.


Entering the market after retreat


The breakout of support and resistance levels can be real or just fake. Frequent mistakes can mislead investors as prices cross the threshold and show signs of good – but then vice versa – prices fall back below the threshold and go against what investors expect. .


Wrong level of support

In such cases, it is best to wait until the end of the next candle (after a breakthrough) and analyze the market situation. If the price increases / decreases after the breakout and the candle is reversed with the breakout time, this may be a sign of a virtual breakout.

Risk Warning: Financial products offered by IQ Option carry a high level of risk and may result in the loss of all your funds. You should not invest money when you do not have enough money.


The support of the support and resistance tools is good for crowd mentality – market participants focus on how prices behave similarly to the past. In a nutshell, they measure the MAXIMUM AND MAXIMUM PRICE for the current period – and evaluate events that take place during this time or may occur in the near future. If there is no indication that any disturbance or major event may affect their property, that means the price will remain within the same limits.

In general, this method is simple – you just have to pay attention not to make mistakes with the fakeout level.

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Wish you happy and successful transactions!

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