In this article we will look at how to properly conduct levels of support and resistance.

First of all, it is necessary to determine the schedule with which you will work. In order to correctly conduct support levels of resistance, it is necessary first of all to analyze at least 20 instruments. The main criteria for choosing an asset is how much the tool itself recognizes certain technical levels. And so let’s take, for example, an asset NZD / USD.

First you need to postpone the schedule itself, so you can analyze a longer period. Next, you need to select a time frame: at least D1 or you can use W1.

 

Weltrade chart 1

 

On the D1 time frame, you will see the period for the last one and a half or two years, and accordingly you will be able to correctly analyze one or other patterns that were previously on the price chart.

Next, before you conduct the levels, you need to understand where the current price is in the market and what will happen when the price moves down and when the price moves up.

For example, if the price goes up the nearest pivot point — this zone.

 

Weltrade chart 2

 

This zone can become a strong enough line for a reversal when the market moves up.

And the bottom point:

 

Weltrade chart 3

 

The pivot point of the market is in this area, we noted two points for ourselves. This area is quite serious.

We also see that in the area of ​​this level, the market approached this zone quite well and even a non-reaching point was turning around.

 

Weltrade chart 4

 

It can also be noted that when the market moves to this level, the market constantly beats off of it, and it was not even broken the first time.

Thus, when opening a deal to sell when the price moves down, you must wait until the market breaks through this zone and after the breakdown one or another pattern can be used.

In general, when gaining an understanding of the potential of market movement, both up and down, you can already build your own strategy.

 

Weltrade chart 5

 

For example, here, with a probability of 60 percent, the market will go back – up from this level, respectively, from this level you can build a strategy to increase by hitting tactics from the level.

The next important level, which can also be considered

 

Weltrade chart 6

 

Here a cluster of shadows represent the next reversal zone. Accordingly, we constructed an averaging value between these shadows, plus or minus. This level can also be turning. In the area of ​​this level, the market is constantly consolidating and fighting off.

These shadows actually show traces of a large participant.

We also note two more zones below. It can be stated that they are close to each other. So we had another level.

 

Weltrade chart 7

 

The graph still has areas of accumulation of shadows and points from which you can draw levels. We also conduct them, and on the basis of the schedule looks like this.

 

Weltrade chart 8

 

Here is such a markup that allows you to quite quickly and quickly understand the potential of market movement and assess the situation at lightning speed.

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Weltrade: How to conduct levels on Forex
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