The cornerstone of technical analysis amongst the professionals on our trading floor is the effective identification and utilisation of support and resistance. It is easy for novice traders to get sidetracked by the plethora of tools, indicators and studies that exist within the field of technical analysis and to overlook the basic, essential and ultimately profitable principles. However, if a trader is able to consistently identify where the market will find support or resistance and how significant the market’s reaction to the price level will be, then he will be able to make effective, profitable trading decisions. (more...)