How To Draw Accurate Support And Resistance Zones

[moonchild]

First things first, forget about those pre-drawn lines on your trading platform. Those lines may be convenient, but they're about as accurate as a politician's promise. To truly become a pro at support and resistance, you need to learn how to draw them yourself.

Start by identifying the key levels on your chart where price has previously reversed or stalled. These could be areas where price has bounced off a certain level multiple times or where it has struggled to break through a certain point. Once you've identified these levels, draw your lines with precision and confidence, do not let yourself get lost in the details, just draw your lines where you see a clear support or resistance.

But here's the catch – support and resistance levels are not set in stone. They're more like guidelines, really. So, don't be afraid to adjust your lines as the market evolves. flexibility is key in forex trading, you have to be willing to change your mind with the market.

there you have it, my fellow traders. With a little practice and some sharp lines, you'll be drawing accurate support and resistance zones like a boss. And who knows, you may even start to make some serious moolah if you put in the work.

 

[selena1]

It is important to note that while drawing support and resistance levels is a fundamental aspect of technical analysis, it is not a foolproof strategy and carries inherent risks. Traders should always use proper risk management techniques and consider multiple factors before making trading decisions. Additionally, relying solely on technical analysis without considering fundamental factors such as economic data releases, geopolitical events, and central bank policies can lead to losses. Traders should aim to use a combination of both technical and fundamental analysis in their trading strategy.

 

[uptrendfinancialsignal]

The support and resistance zones are very instrumental for anyone who wants to get engaged in forex trading, you must be able to identify the support and resistance zones without wasting much of the time on frivolities because it is one of the things that will help you make an informed decision while trading in the forex market . The inability to identify the support and resistance zones could be liking to inexperience and inexperience is totally unacceptable in Forex because it is a kind of investment that requires enough experience and if you are inexperienced, you cannot join forex trading platforms in order to avoid losses and if care is not taken, you can lose all your fund in the blink of an eye.

 

[Shaf]

It takes a lot of practice to actually realize that using lines at support and resistance instead of identifying them as zones is the best practice in using support and resistance in trading.
Sometimes, you may also need to use other tools for confluence if you want to take a trade, because price will come back to the zone, but not the actual level, bouncing off moving averages, or Fibonacci retracement levels.
It also helps to start from about two higher time frames from the one you intend to use. This gives you greater clarity about where price may react to cut you out.

 

[Dita Walczak]

Generally, traders use trend lines to identify support and resistance of the market. There are some indicators too that can identify the support and resistance level for you like fibonacchi, moving average and Bollinger bands. Eurotrader provides all technical tools and indicators to traders.

 

[FXOchartist]

There is no exact to define support and resistance price, by means support and resistance are the level price where the price movement is faced like a barrier to continuing the trend. I prefer to draw support and resistance with zone support and resistance than the price itself. There are so many ways to draw support and resistance, like using a pivot point calculator, using the upper band and lower band lines as dynamic support resistance, or drawing trendline manually.

However, learning support and resistance zone is important to help us make planned trading, because on these zones we can place stop loss or order price to manage the risk in single plan trading.

Trading in FXOpen account, besides using support and resistance,I also combine price action and candlestick patterns.

 

[Asahi]

You can use trend lines to draw support and resistance level. It falls in the section of technical analysis that will give you ideas about where the market can move. Eurotrader provides signals to help traders earn profit from the market.