The main thing when trading according to the levels of support and resistance is to invent a good criteria of the breakthrough of these levels as a moment to enter the market. The target of every Singapore trader is to find the best pont of entering the market. A trading strategy of support and resistance levels has perfect opportunities to catch a good trend. Singapore Forex market is very chaotic and unpredictable. Its complex system is influenced by many factors of the outside world and causes its movements.

Let’s use the graphs of any Singapore broker to see what is hidden behind a candlestick chart when it presents a potential breakthrough of the support or resistance level. The most tolerant traders who are already in the market and keep the open positions will have their positions open hoping for the end of the market’s correction. The more emotional traders will see the opportunity to enter the market on the opposite side, trying to catch the top of the market’s trend. The rest will remain as audience, not entering the game and their opinions on the further development of the situation will be different.

At this stage, the behavior of rates stays uncertain, since the views of the traders in the market are divided. In addition to that there are still many other traders who are currently not trading and they are not in a hurry to start trading.

Every person has his own minimal measure of minimum uncertainty that is needed to start a trade. This criterion is directly depends on the psychology of the person. Though every trader has his own measure of risk, so they will open positions at a certain price level at different time. When the majority of traders make their decision and start trading in a certain direction, the market will become the most stable. In the charts it will be presented by a strong trend in a certain direction accompanied by some price corrections.

There are many external factors that influence on the market’s direction. The most important one is a fundamental factor based on the analysis of the economical events as well as the technical analysis laid down in the past movements. When all these parts contribute to the price movement in the same direction, an experienced trader has an ability to see a potential trend before it starts.

Yet, if you do not have much [spin]knowledge to recognize a strong trend with a high level of probability, we recommend you to make a detailed research of the price movements in the past along with technical and fundamental analyses that will give you much more information than watching the chart waiting for the breakthrough of the resistance or support levels.

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