How to draw support and resistance levels
The only thing I can add is that remember you are only still learning – don’t beat yourself up that you can’t see these or that you see obstacles preventing you from trading. Most newbies just jump in head first like Rambo without any thought of risk. You have progressed beyond that and are recognising LOSS before profit – this is something many “so called” traders would like to do so be proud of where you are right now.
As far as recognising S&R and the value to add to each, you have to be patient and study thousands of charts and practice reading them. If the only time you get to use S&R is when you are trading then you will NEVER make it. You must study and practice on history.
Blackeagle already gave you a big hint on what to look for so, just to repeat and expand on that, draw your S&R lines and then ZOOM OUT. For each line you have drawn, find out HOW IMPORTANT THAT LINE was to the pair. How many times was it support? How many times was it resistance? Was it swing support/resistance? If so, how many times? Was it MAJOR swing support/resistance? If so, how many times? Was it a consolidation price?
By doing this, you will be able to see which SHOULD be the problem areas. Nothing is perfect and don’t ever expect it to be – there will always be a NEW support/resistance which takes us by surprise – but that is why we have MM.
The other thing you should do before each trade is either have targets or expectations. In other words, are you looking for a 200 pip trade or looking to get in on a new trend? You MUST know this before any trade otherwise you will come away with nothing or maybe a loss.
I make my charts after every trade I take, I post some to this and other websites and blogs in order to help other learn to trade. It also helps me to improve my trading, so not totally selfless, lol. Onwards and upwards folks, we are here to beat the brokers.
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