Support and resistance levels

[tom2806]

Hi

I am new to this trading business and currently am using a demo account to get to grips with all the jargon and ways the market moves.

I looked into the ftse futures and it gives levels of resistance and support.

Can anyone explain how far in the future these are.

For example

Currently they are showing today at

Resistance: 7035, 7037, 7040
Support: 7030, 7027, 7025

Also the latest ftse figure is 7053. Now the ftse is currently showing on IG at 7108 so a way off the resistance and support levels.

Im confused at what these levels mean and how they can help wen it comes to trading as they seem to be way off what the ftse actually is.

Any help appreciated.

Thanks

Tom

 

[alexaherself]

Hi Tom, I have only a moment to reply, but these two pages, between them, explain all the introductory background (with some helpful diagrams) to what you ask about, above ...

http://www.babypips.com/school/elementary/support-and-resistance-levels/support-and-resistance.html

http://www.babypips.com/school/elementary/support-and-resistance-levels/trading-the-lines.html

The figures you provide above are all too close together to be of any help, in addition to which they're all well outside the market's current range. The key concept to grasp is that these are recent historical records of where the market encountered support/resistance/turning-points (perhaps from yesterday?).

 

[Jell02]

This is a full trading guide that covers support and resistance levels amongst other things such as popular technical indicators. It is primarily on the Forex market but most parts can be applied to any other markets. I hope this helps, https://www.ddmarkets.com/the-foreing-exchange-market-tutorial/