Support and Resistance Levels which matter

Let’s see what Wednesday brings for GbpUsd

and here EurUsd

Yesterdays Price Action for EurUsd. Nice to see how Price rallied into a S/R Level, made a reversal, broke a lower level, retraced and retested that level and then sold off making the Low of the Day at one of the lower levels. Nice opportunity for a 20-40 pips run.

GbpUsd was choppy yesterday. The London Open started quite nicely and gave some nice reactions on the levels. Later in the day we broke down and it became messy…
That’s the reason why we should not be greedy! Next to fear this is one of the biggest mistakes we as a trader can make. Assume for a moment you entered Long in the morning and made 20-25 pips. For a Intraday scalp/trade with 1.5% risk or so, that is enough to double your equity over a year.

Greed will ruin this. You do not exit and the open profit turned into a loss. Fear of missing out could have lead to chasing price and buy high.

My tip: Never FOMO period! Missed an opportunity?..who cares…there are plenty opportunities to come.
My tip: take partial profits! This way you bank your pips and you can safely watch how the remainder of your position pan out. If it stops you out, okay, you still have made something with your partial. Do you catch a runner, even better. Exit once Price reaches an old High or one of the S/R levels I have drawn. Don’t care if Price continue to go higher. Never regret getting out with profits!

Below the levels we can study and watch for EurUsd for today. Not all are visible on the snapshot. See my profile on Tradingview for more.

Below the levels we can study and watch for GbpUsd for today. Not all are visible on the snapshot. See my profile on Tradingview for more.

How should price behave between these levels or when going through them? Bounces, pullbacks, accelerating momentum or what? It’s not clear how they are helpful. Can you please explain?

Below the levels we can study and watch for EurUsd and GbpUsd for today.

Hi Ontario!

Thanks for the question. In general you can apply every theory about trading support and resistance levels or zones.

If you ask me, personally I only like to use S/R for entry when a Level is broken (not minor with only a wick, but preferable with a beefy body through it) and then Price retraces into that same level for a retest. Expectation would then be that Price only retest the level and then continues into the direction it has broken the Level before. In short: “Support turned into Resistance” or “Resistance turned into Support”.

The Market should first show her hand into which direction it wants to go. So I wait for that expansion higher or lower, which will break levels. Most of the time, Price will pause and retrace before continuing his move in the direction of the initial expansion. That’s were these levels come into play. When you take the levels, transpose them to your chart and then study what Price did. Make your notations on it like I posted some examples above. Add text what you notice. Over time you will start to recognize certain things. This could be for instance:

At what time of the day/different sessions do the wins take place and when are they unsuccessful.
What is the pips available for a win, what would have been the draw down.
Do we see repeatable occasions of respecting levels as resistance and break each level below the market or the other way around.

The latter gives you clues about directional bias/current trend. This in fact is already a stand alone way to use the levels. Only to come to a conclusion if we are in a bullish trend, a bearish trend or in a consolidation stage. Not using them to define Trade Setups and Entry Signals.

This is how I see it. But the beauty of Trading is that we all see the same chart and candles, but we all can see different things in it, come to opposite conclusions AND still be both right.

Hope it clarifies some things to you. If not, please let me know. I would like to discuss and make things as clear as possible.

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Below A Trade example via Paper Trading in Tradingview. Perfect way to practice your skills.

See the warning sign…always watch out for the fake move trying to get us Long at the start of the London Open Session.
Price finds Resistance and respect a Level.
Price start to break down and violates 2 Levels
I entered a Short for 0.2 lots and put a Stop Loss in. Very important, it’s our only form of insurance we don’t loose more than we are willing to risk
Then I set my targets (blue boxes). For Shorts I like existing below old Lows. As a rule of thumb I take partials at 20 pips open profit, 30 pips and 50 pips. I let the remainder of the position run, to catch a runner in Price.
In the meantime of these partials I will lower my Stop Loss to reduce Risk.

I cannot stress enough: read my posts as food for thoughts and ways to practice Price Action. Never ever trade Live funds when you don’t know what you are doing and practiced these kind of Setups numerous times.

Hope this helps to start practicing the levels I provide.

Warm Regards,
Mariinus

almost there…

Quick Recap for the Weekly Levels from last Sunday

Below the levels for today Monday Feb 17 for EurUsd and GbpUsd so you can practice :slight_smile:

These are Intraday levels.

See more details and more Levels via the Tradingview inks below.

Warm Regards,
Mariinus

Below the levels for the Week to come for EurUsd and GbpUsd so you can practice :slight_smile:

These are Weekly levels. Ideal when you have more patience, want to capture the Weekly Range and when you are not a Daytrader.

See more details and more Levels via the Tradingview inks below.

Warm Regards,
Mariinus

Mid Week Update on the Weekly Levels for GbpUsd

Mid Week Update on the Weekly Levels for EurUsd