Support and resistance levels are considered critical for profitable Forex trading, but some claim they cannot be identified. Moving averages, pivot points, and other derived indicators usually serve as levels of support and resistance. However, this is not always true. It is advisable to research those levels.

Support and resistance lines on a chart are made up of price levels that can be used as "refuge" prices. These refuge prices occur on either side of the current market price and dictate where traders and investors may buy and sell. A trader believes that a certain price is too low to purchase or that a certain price is high enough for them to sell. Support is the lowest price at which traders will buy, while resistance is the highest price at which traders will sell.