I am going to say something that will give you a clue to my thinking. There is nothing else for me to develop on the topic. You will need to take it and run with it. When looking at a trading time frame, many traders look at the close of a given period. I would suggest you look at the open of the period you are analyzing and not worry about the close. Particularly on the longer time frames.
Now with that said....
First I look a monthly charts going back several years and look for classic S&R zones. Once identified, I go to the weekly levels and look at price action, then further refine s&r in these areas, lastly I use the daily chart and do the same thing. . It is very time consuming. I print out charts, draw lines, etc. But it works. It is old fashioned, that is why it works. There is no magic. Once you do it for many months, you get better and better.
In the currency markets, you always have.....
movement, consolidation, movement, consolidation.
Currencies are much differenet than a stock, or stock index. Think about what implication fair value has if the EURUSD moves 100 pips for central bank, Airbus, etc. Much different implications that if IBM or Big China Utility runs up to new levels. Equilibrium returns for currencies because it almost has to.
There you have it. Clear as mud.
Now with that said....
First I look a monthly charts going back several years and look for classic S&R zones. Once identified, I go to the weekly levels and look at price action, then further refine s&r in these areas, lastly I use the daily chart and do the same thing. . It is very time consuming. I print out charts, draw lines, etc. But it works. It is old fashioned, that is why it works. There is no magic. Once you do it for many months, you get better and better.
In the currency markets, you always have.....
movement, consolidation, movement, consolidation.
Currencies are much differenet than a stock, or stock index. Think about what implication fair value has if the EURUSD moves 100 pips for central bank, Airbus, etc. Much different implications that if IBM or Big China Utility runs up to new levels. Equilibrium returns for currencies because it almost has to.
There you have it. Clear as mud.
Dislikednot complicating but graduakky trying to become Master Trader.
When you are looking to define those SR levels what particular method you are utilizing to locate them? consolidations, fibos, your own? how does this play part in defining those yellow lines?
thanksIgnored