Yash_Scans

Finding key support and resistance levels in currency pairs

Education
FX_IDC:EURINR   EURO / INDIAN RUPEE
EURINR
First of all, the most important thing to remember is the support and resistance levels are not exact numbers. Often times you will see that market broke the support/resistance level but in reality, it was just testing that level. To filter out these false breakouts you should think of support and resistance more of as "zones" instead of actual figures.

So how do you find these zones?
One way of doing it is to plot support and resistance on a line chart rather than a candlestick chart because the line chart plots only closing price. Sometimes candlesticks add extreme lows and highs to the picture which might be misleading because often times they are just "knee-jerk" reactions of the market because someone did something really strange for no reason.

Use a weekly or a daily timeframe to find better swing lows and highs for finding support and resistance and besides that, you get the view of a bigger picture in larger timeframes and you can always use smaller timeframes to look at the smaller picture.

After you plot the support and resistance zones turn your chart back to candlesticks and when price approaches the respective zones you can make use of price action and volumes to enter high probability trades.

With little practice, you will be able to spot potential support and resistance areas easily.




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