[quote=FX1.me;3376434]This is the article I posted a week ago on one of the trading blogs about my understanding of Support/Resistance levels:
I would like to take the time and give a few pointers to traders that would like to understand what support and resistance levels the market reacts to more often then not. Since i mainly trade GBPUSD, I will post 2 charts showing what levels to take into account and how the market reacted to them when they were reached.
On our first chart picture we see that the market is down trending and making attempts to go back up and failing…Now stop and take a good look at the points i marked on the chart. If u look closely, I did not take the highest spike up in the rally but i took the second attempt of the market trying to go up. I marked 3 levels on the chart of which 2 of them being already tested by the market. These second attempts at a rally for the market become its TRUE resistance levels. Also, most of the time when the market falls from these levels the first time and retraces to them, it will give its take profit to these failed rally attempts. It is an “N” shaped take profit concept for those that understand Ichimoku charting and the theories behind them.
Here i used a H1 chart to determine these levels, but the higher the t/f chart the more the market will bounce from these levels. This well let you as a trade have a better clue of why sometimes the market hits a certain level which is not a fib. level and bounces but you were waiting for a fib. level to execute your trade. I hope this information will help you as a trader have more incite into what the market is trying to do and in the process make you a more profitable trader.[/
is it murray maths fx1
I would like to take the time and give a few pointers to traders that would like to understand what support and resistance levels the market reacts to more often then not. Since i mainly trade GBPUSD, I will post 2 charts showing what levels to take into account and how the market reacted to them when they were reached.
On our first chart picture we see that the market is down trending and making attempts to go back up and failing…Now stop and take a good look at the points i marked on the chart. If u look closely, I did not take the highest spike up in the rally but i took the second attempt of the market trying to go up. I marked 3 levels on the chart of which 2 of them being already tested by the market. These second attempts at a rally for the market become its TRUE resistance levels. Also, most of the time when the market falls from these levels the first time and retraces to them, it will give its take profit to these failed rally attempts. It is an “N” shaped take profit concept for those that understand Ichimoku charting and the theories behind them.
Here i used a H1 chart to determine these levels, but the higher the t/f chart the more the market will bounce from these levels. This well let you as a trade have a better clue of why sometimes the market hits a certain level which is not a fib. level and bounces but you were waiting for a fib. level to execute your trade. I hope this information will help you as a trader have more incite into what the market is trying to do and in the process make you a more profitable trader.[/
is it murray maths fx1
