Alright, time for psychological levels.
Rules:
1. Draw thin horizontal lines starting from Monthly chart all the way down to Daily Chart. Sometimes H4 depending on the price action.
2. Beginning with Monthly, identify key areas where candle BODY open/closes are respected. Pay attention to my screenshots below. Notice how clean the candles respect each level.
3. In addition to these levels, mark the LAST month's high and low
4. For EACH line you draw, round it up/down to the nearest .50, .00, or .25
5. As you come down from Monthly to Daily, fix any horizontal lines on lower timeframes to make them more accurately reflect the candle bodies.
Here notice my chart for USDJPY:
Monthly:
Weekly:
Daily:
So now you will see some interesting things happen with these levels on lower timeframes. Use trend & market structure, and you can use fibonacci retracement to enter once a level is either broken or to be respected, and use regular old S&D and these levels as confluence.
Rules:
1. Draw thin horizontal lines starting from Monthly chart all the way down to Daily Chart. Sometimes H4 depending on the price action.
2. Beginning with Monthly, identify key areas where candle BODY open/closes are respected. Pay attention to my screenshots below. Notice how clean the candles respect each level.
3. In addition to these levels, mark the LAST month's high and low
4. For EACH line you draw, round it up/down to the nearest .50, .00, or .25
5. As you come down from Monthly to Daily, fix any horizontal lines on lower timeframes to make them more accurately reflect the candle bodies.
Here notice my chart for USDJPY:
Monthly:
Weekly:
Daily:
So now you will see some interesting things happen with these levels on lower timeframes. Use trend & market structure, and you can use fibonacci retracement to enter once a level is either broken or to be respected, and use regular old S&D and these levels as confluence.
Udemy Forex Course: https://shorturl.at/blz27
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