It's pretty straight forward here, with a 3rd rejection imminent of a key level and psychological level (1), we can use this to our advantage by placing a sell-limit at the rejected daily price of 1 with tight stops. Using this technique may result in being stop hunted (as you see the second test spiked a 4th time), however the 3rd drive into the key level statistically negates his probability severely, making the risk worth the reward. As you can see, the RR in this REAL trade I took was unreal. It was nonetheless, a great example of how to play around with key levels especially concerning the historical significance of this kley level for USD/CHF which will require you to do some backtesting to see (the relevance of 1's backtesting played a factor into my confidence factor while executing). Support and resistance levels are one of the most important technical factors in trading. “Key levels” are certain prices for a currency pair which may support the price below the current market level or a price which may resist above the current market level. Support acts as a floor and resistance acts as a ceiling, both of which are “barriers of price.”
Send me a PM for questions, or comment below. I'm happy to help those that are eager to learn how easy this market is to trade if you can see it in a certain detail.
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All information and material is for educational purposes only and is not intended to provide financial advice.
This is not financial advice & I am not a licensed financial advisor.