i finally understand how to draw support and resistance and i am amazed and how well they work and it should.No matter what strategy you use you still need to respect these levels.
It has added a whole new demsion to my trading.Now i like to sell at resistance and buy at support where previosly i ignored these levels.
Of course they work. You need to really use them, soooo useful.
Drawing your own S/R levels is very useful but if you use some basic indicators like pivot points, fibs and daily/weekly highs and lows you can get automatic S/R levels. When two or more of these levels occur within a few pips of each other I’ve found they are so much stronger.
I keep having to remind myself of institutional levels like even hundreds, fifties and twenties. In combination with the above they are really strong S/R and when they break by more than a few pips it can be a great time to profit with a tight stop loss should the price move back into range.
Support and Resistance rule:)
That is a good rule of thumb for trading in general. The more factors you have that persuade you that a trade is a good idea, then generally the higher the probability there is of that trade working out. If you see a few setups that suit your strategy, look for the ones that have the greatest confluence of factors and they will be the higher probability trades. S&R works great for this, so if you find price bouncing off a major round number (such as parity on some pairs), coinciding with an area of resistance such as the Monthly Pivot, plus a Fib level, plus (if there is a fundamental element to your strategy) a wider reason for that pair to be turning around at that point, then you are more likely to be looking at a winning setup. The more reasons that there are to enter a trade, the stronger the case for entering it. S&R is, in my experience, about the most powerful single factor that there is.
of course it works!
I’m sitting on some positive pips right now because of S/R
I’ve begun combing self drawn S/R lines with Pivots. You’d be amazed when you see how even when your S/R lines may fail, pivots hold up to give you some reassurance or hold you off taking a bad trade. It’s saved me countless times. Except last week when we broke support and I sold into the weekly S1… well, that’s how you learn.
Behind every support and resistance is intent of order book.
Bids, Offers, Barrier Options, double-no-touch (DNT) structure, Knock-Ins or Knock-Outs Options ect. define S&R.
If a player want’s to move a yard [1 billion] or more up or down S&R doesn’t hold any weight.
It pays to remember S&R are guides, only. It’s the order book that matters.
And what bookie must I mug to get my hands on this order book 
Use your eyes.
That’s all what you need to do as a retail trader.