At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals — no matter which way the markets move — with objective and unbiased recommendations not available from brokers.

The Trader’s Toolbox posts are just another free resource from MarketClub.

—

“Although many of you will find this lesson in one of the most basic concepts of market behavior “old hat”, it never hurts to review. One of the first things a new trader is told (I hesitate to say learns as many never do) is to buy a breakout above resistance and sell a fall through support.

Resistance is the level which holds a market down, while support is an area which props up a market much like a ceiling and a floor. The key is to identify the critical levels. There are a number of methods to determine support and resistance: trendlines, moving averages, retracements, Gann angles, etc. However, simple observation can be an effective means of locating the important areas. A quick glance at the October cotton chart reveals the most basic levels of support and resistance (broken lines)…”

Revisit the Trader’s Toolbox Post: “Support & Resistance” here.

Last 5 posts by Trading School

• Happy Thanksgiving from the MarketClub Team - November 25th, 2009
• Traders Toolbox: Divisions of Eight Revisited… - November 24th, 2009
• The fastest, easiest way to tell the trend in the forex markets. - November 23rd, 2009
• Tiger Woods’ Secret is really the key to your success - November 23rd, 2009
• Saturday Success Story - Barry, Indiana - November 21st, 2009