Hello there guys, my name is Michael and I’m new to forex.
I’m very very into forex, I haven’t been this exicted for something in a long time.
But today my question for you is how do you set up Support and Resistance. I have done all the digging, I follow one guy on youtube who has helped me VERY much, but I don’t completely understand this. He sets up his resistance and support like key levels, on round numbers, where the banks trade at, but I don’t know which round numbers are those. For example EURUSD, round numbers are 1.300, 1.250 (this one seems to be the resistance at the moment), 1.200 (support rn if I’m not mistaken).
Could you guys confirm or correct me if I’m wrong? Should I use middle levels between these, or is it just overcomplicating? Thank you for you replies everybody, have a great day!
Have you done the babypips course? Itll help. Support and resistance lines are better looked at as zones as price can under shoot or overshoot.
I am only just re-learning s/r levels. I would not trust some s/r for trade entry decisions but I would look to exit an open trade at these levels - round numbers would be in this class for me.
But in any case, I’m only going to enter off s/r when it has proved itself with a test and a re-test which either holds or fails.
I think if price bounces off the level twice, that level is significant.
Its 3 times for me. It should be more of a potential entry/exit area rather than a confirmed level/spot.
Scruffy Trader has a nice video on this on YouTube
To setup support and resistance you can also use trend lines. This is my preferred method. Drawing trend lines is just a matter of joining two dots. Find the lowest low and draw your support line towards current price joining it to the next low. Your line shouldn’t cut through any part of any candlesticks. Then for resistance find the highest high and join it to the next high.