Support and resistance indicators are used by Forex traders to identify market areas that could act as turning points for price. These indicators are based on the theory of supply and demand and the notion that price tends to react at certain price levels before continuing with the prevailing trend.

With a resistance indicator, your positions are automatically rejected once a price breaks past a certain level. This can be used in your Forex trading to protect you from unnecessary losses and lock in profits once a market has proven its strength.