I often hear people saying that you should not spend much time working out your support and resistance lines and I really disagree with this. I feel that as a price action trader, my S/R lines are the foundation of the decisions I will be making in the near future so therefore I spend a lot of time ensuring that I put lines on the chart according to my rules. This makes me a lot more comfortable when scanning through my charts because I know I have done my ‘due diligence’.
I agree that some charts you have to have zones but there are many other where price respects more precise areas (ie round numbers). Example:
EURUSD - I find this chart very difficult to read.
XAUUSD - awesome respector of levels.
As an example here is the same USDCAD chart with 2 different views. Remember S/R levels are your foundation as a PA trader so the levels you set could drastically alter your trade bias. The reason for the trades is less important in my screenshots (you’ll have your own reasons for entering) the point Im illustrating is how a level you define alters the chart perspective.
