Currency Market Tend To Follow Support And Resistance Levels, Use Those Levels To Identify Entry And Exits, And To Apply Risk Management
As we know forex trading is complicated if we don’t exercise and we don’t know what exactly price from support and resistance levels that will reverse to get best momentum before entry or open position, lines of resistance and support are the basis of the classical trend analysis. All the trend lines (channels), graphical models reversal and continuation of trends – this is only a combination of resistance and support lines. so trading with technical analysis have one of the keys to making longer term profits is being able to use support and resistance to make profits.
Most traders fail to trade with support resistance levels correctly so here are some tips using indicator or we can see manually check those support resistance levels with our eyes.
Drawing Support Resistance Levels
According from picture above we can see high low only from high wick or low wick, the tips on drawing horizontal line of support resistance level is by looking left from current price, and find which one price has been retest at least three times or more and on those level we will found rejected support or resistance it self, and more accurate at least we checked this support resistance levels on one hour time frame and four hour time frame. More bigger time frame on checking support resistance levels more strong this s/r levels.
Here again some example from my support resistance charts :
The golden line is strong support resistance line so we can entry on it.
Support and resistance levels do not appear by some mathematical formulas, those lines appear then attitude of trader towards the market changes. The bigger shift in outlook to the market by the majority of the traders, the more important those lines become. Market always has a point, where market starts changing it’s direction. If market was going down and suddenly price start to climb up, point where market turned around will be known as a support. And opposite: point where market, after going up, suddenly starts falling down, that turn around point will be known as a resistance. So we can say that at those points traders have changed theirs opinion about the current situation and decided to go other way.
And the easy ways to find at least accurate support and resistance level is using with indicator, my favorite indicator is Murray Math and support resistance levels that i’ve got from forex factory, you can use it on m30,h1 or even h4, daily trader using it on combination h1 and h4 time frame. Use this support resistance levels during trading at least two time frames of your currency pair so we can found zone entry levels.
Open order better when you get a signal or have found any factor, or (in your forex trading strategies) on at least two time frames! The golden rule of the bankers is – let me take less profit, but absolutely reliable and everyday!
Whatever fundamental reasons are, or may be is no reason at all, traders already started selling or buying. And those lines will let us know about those changes. With some fine-tuning, the method of drawing support and resistance can be utilized by traders as a comprehensive trading model for the forex market. Always practice, practice and practice to get steady trading skill using support resistance levels as our entry levels. Download and learn about great trading with support resistance levels here and we’ve hope we all as a trader can be more wise on using this support resistance trading technique as our based analysis and combined this based strategy with candlestick basics analysis and basic stop loss strategy to get more secure.