This is a simple look at the markets. Well in this example we have GBP/USD. I have circled the candles that I thought had some significance. Then I just put floors in. For this example notice we have 4 floors to climb. These floors are simply support or in this case resistance. Now once price can climb up a floor we assume what was resistance is now support. We never really no anything for sure but here is a step through using simple trendlines on a 5min chart. Zero indicators and trendlines are drawn off candlewicks.
So price tested the first floor and was rejected. This means we place a trendline down off last swing high. One might look for 2.0181 breach a signal to get long.
Price triggers and moves into the first floor. Now we need this floor to hold. We�ve drawn another trendline. If a few retests aggressive traders might buy the support and sell the resistance. Last candle into the 1st floor was worth a few pips.
Here is a nice move out into the target zone or 3rd floor. Once again we place another trendline. We are bull back down to the first floor. Notice how the floors are doing a pretty nice job of confining price. Interesting action here as price was rejected with each test of the 3rd floor. We would enter on break up over 2.0202 area.
So price did pop nicley. Anyway I did not get this one as I was not home. I won’t bore ya with the step by step play…