There are many traders out there that make the process of drawing support and resistance areas a whole lot more difficult than it needs to be. Once you get a good idea of how support and resistance levels should be drawn, you should not have any problem using that knowledge as an additional tool in your trading.
I hope you guys now have a much better understanding of how support and resistance should be drawn. And more importantly why it should be drawn like this. Practice this as much as you can, because many trading strategies heavily rely on your ability to correctly draw support and resistance.
As shown in the video, drawing support and resistance is not really that complicated. It is however, key that it is done in a consistent way. So when you doubt whether you are drawing a certain level correctly, just try to zoom out. By that I mean that you need to get an overview of the bigger picture and figure out why you would draw a level there. Has price reacted from there a few times before? Has it reacted strongly? How did the price get there every time?
It's all part of a bigger story you need to see. When you manage to grasp this bigger story, the correct support or resistance levels will show themselves to you much easier. They will be the addition to your charts that they need to be. Support and resistance is s tool and a reminder that an important level is near.
Us your common sense to draw support and resistance levels and you will save yourself a lot of time. And besides it will also save you from taking a few bad trades. Keep it simple and don't draw too much on your charts. You'll lose track of what is what and which drawings are actually important.
Watch the video above for the full lesson so you can continue to enhance your skills and be better everyday.
#UrbanForex - Be conscious of your trading!
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