Support and resistance

So I finally got into trading with price action :raised_hands::raised_hands::clap::clap: there seem to be an issue identifying the key zone of support and resistance and that’s killing me I mean, getting those places kinda gets me confused @justineqaulstime

It can be confusing but if you keep on practicing it gets easier to identify the support and resistance areas. This lesson from the BabyPips school might help you.

Initially it’s tough to know about support and resistance areas. Try to take help from various educational resources provided by various forums or brokers. Gradually you will learn to find the support and resistance areas.

In general, it is similar to any other indicator. And it has approximately the same principle. You can use it with a personal analysis or with a ready-made indicator.

the key is just keep practicing in your chart, later when u always practicing, u only need 5-10 sec to identify SNR

It is definitely worth trying at least once.
Because it is the basis for many types of technical analysis.
And it allows to keep the situation under control.

You can evaluate it visually and on different timeframes - just pay attention to those that best suit you by temperament and personal preferences.

try using time frame of 4H and daily

Well, many traders prefer this because it has real prospects. But there are also some features that require new knowledge and constant practice.
Maybe I will advise you to start with a demo and try to at least intuitively identify what you can use to make decisions.

To avoid confusion you have to have clear understanding of the underlying mechanism that makes supports and resistances work. It is accumulation of limit orders at some area which is driven by expectations of other players’ that this area will play out as support or resistance.

Basically what we are talking about is self-fulfilling prophecy. You aim to not predict price movements but to guess other players’ expectations about future direction and how they use their expectations in their trading decisions (which moves the price).

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The chart reading skills are the most essential skills which a trader needs to acquire for his trading needs. Demo accounts can indeed be quite helpful here.

The price action chart is the fundamental chart which a trader needs to understand like the back of his hand. Going with the news and trends to see where the resistance starts to build and how to locate different zones is needed. The best part is there are examples like Brexit. Backtesting to then and seeing the charts and identifying the zones can be done.

Analysing the price action chart with other charts is also one way. I traded with Avatrade’s proprietary platform. But the quality of charts present in the MT4 trader (which is provided by all the brokers but at that time I was using Fxview )was more up my alley. And I used price action charts in different formats like ribbon, candle stick etc. to identify different opportunities of trade.

Yes, I also favor the price action strategy and there are so many indicators that can be used with it to make the trades better.

Demo trading is the best practice to identify the valuable opportunities for trading; this is the reason most of the traders move to demo trading first and then move to real trading.

Yea and I agree with you that if you want to identify the key areas then obviously you have to understand the news and trends. They determine in which direction the markets would go. Once I was trading manually with Fxview and MT5 platforms where using correct analysis of just a trading chart and news, I found that resistance is forming so I put the short call and earned good from that trade. On the contrary you cannot stop the automatic trade; the same thing turned disaster for me when using XTB. I traded automatically (without monitoring) and identified the wrong regions. Though thankfully I was using stop loss which saved me from getting on the road.

Aren’t we all really glad about stop loss :slight_smile:

Pick your favourite chart type,Identify all highs and lows, add lines to connect all highs and lows. Do practice regularly and you will learn it easily.

It is important for a trader to be able to read one or the other kind of chart. After trying different charts, I found that candlesticks are the easiest ones to read. As they help in determining the possible price movements on the basis of the previous patterns, it gets easier for me to make my decisions.

Choosing the right forex indicator is really important. Be it support and resistance, MACD, or RSI, it is about satisfying your trading requirements and that’s what you must focus on. Don’t follow the crowd blindly but try to think about your own requirements and then take your steps accordingly.