Learning how to draw in accurate support and resistance is crucial to be a successful trader.
It is not hard to learn and most people tend to over complicate things when it comes to trading.
The truth is that using simple support and resistance is one of the best strategies around.
Finding strong support and resistance zones is so crucial because those areas on the chart are where we enter our trades. Price avoids areas like this because millions of traders around the world including major bank institutions and market makers trade these same areas, so price always avoids them due to the tremendous selling/buying pressure.
This is what makes these support and resistance lines such good zones to trade from. Always set aside 10-15 minutes prior to each session and draw in your S & R.
When analyzing your chart for support and resistance, you’re looking for wicks (or shadows) on the candles which signifies rejection (a major sign of reversal).
You are looking for this behavior to repeat itself. I check at least 3 time frames to draw support and resistance.
First, I like to check the 1 minute chart. I zoom out and visually pick out any obvious support and resistance zones and draw a line.
Then I switch to the 5 minute chart and make sure the same line adds up on this time frame as well and I’ll adjust the line if needed.
Next I zoom out again and check the 15 minute chart to see if the line coincides with rejections on this time frame also. When price approaches the line, it should show signs of rejection on all time frames if you’re going to trade it.
The biggest mistake people make is when they only look at 1 time frame and draw weak support and resistance due to that. The key is getting your line to be as precise and accurate as possible by checking previous price action behavior on at least 3 time frames.
Price almost always respects these strong zones, making them amazing areas to trade.
I can’t stress how important it is to draw in these S & R lines prior to each session. It will remove a great deal of stress from your trading since you know exactly where to enter the trade.
The key is being patient and only trading the really strong zones. Don’t think of them just as lines on the chart, they are the actual strike rates we target to win our trades.
Where the line is positioned is the strike rate you trade so taking ample time to draw the line in the right place (ideal strike rate to trade) is very worth it.
Like I say, take a good 15 minutes before each session and you’ll be pleasantly surprised how many strong trade opportunities come from these zones alone.
I really hope this helps to emphasize the importance of learning how to draw in support and resistance before trading.
- Give yourself 15 minutes prior to each session to draw in and analyze your support and resistance.
- If you have to squint to see the lines it probably is not a good zone or strong level.
- Ensure that the lines have shown signs of rejection before.
- Make sure price action has touched the level at least 3 times to be safe
- Zoom out by using higher time frames to make sure the lines coincide. (the most important tip)
If you want to learn to draw support and resistance zones, please click here
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