What’s up Traders, in this article, we’re going to be talking about Best Support And Resistance Levels To Swing Trade Stocks And Currencies.
If you want to be successful trading the markets, you better focus your efforts on support and resistance, support and resistance is practically the foundation of technical analysis.
And the better traders understand, that these levels serve as a starting point for their trading strategies, however there are some underrated levels, that serve as important turning points on the market levels, that are often ignored by a part of market participants.
Hay traders in this article, I will show you three overlooked support and resistance areas, that you should start pay attention to the first underrated support and resistance.
Monthly Market profile
Is the monthly market profile the market profile help us to understand, who is in control of the market.
And what is perceived as fair value, we are interested in the point of control and the value areas the point of control, is the price.
Where most trading activity took place during the month, while the value area is important, because it illustrates where 70% of the trading activity took place during the month.
Here’s the dax index on the daily chart, the green line represents the value area high the red line the value area low, and the blue lines the upper, and the lower point of control the month started at the value area high.
And found support at the point of control in the previous month, the price started at the point of control ,and found resistance at the value area high observe.
Her in the past the price acted and important support, and resistance, here’s the Dow Jones index, the month started with a price finding support at the point of control.
And now we are approaching the value area high observe, how in the previous month the value area low acted as resistance at first, and after the level was broken to the upside acted as support.
Also look in the previous months at the point of control, also acting as relevance with water resistance.
Let’s look at this Bitcoin chart observe, how the price found support around the point of control, and stopped at the value area high it then found support, once again at the point of control.
And stopped at the value area low the point of control then acted as resistance, as the price tried one more time to find new highs the next month.
The value area low acted as support, and after broken as resistance after a great bull run the price found resistance, at the point of control observe, the candle wick formed right at the top of the point of control.
The next month found resistance, at the value area high in the price plunged through, the point of control until it found support at the value area low.
Pay attention to monthly POC and Value areas
I hope you see that these levels are very important, and in the future you’ll pay more attention to these areas.
Yearly Pivot points
The second underrated support, and resistance is the yearly pivot points, most traders concentrate on daily or weekly, pivots what they often forget.
About a yearly pivot points it is good to remember that LEP, what points can give us a better long-term overview, and some decent price targets.
Here’s the dax index on the weekly chart, we are currently trading right on the central pivot point observe, how the price rejected the yearly pivot point few months ago.
And how this area acted as a resistance for the beginning of the year, also observe, how this year’s low is actually the S1 early level many traders would have missed, this detail as they concentrate their Forte’s on daily and weekly pivots.
Here’s another example the Dow Jones index observe, how he started the year with three consecutive wool candles, but the upward move was stopped, at our one-year level the market plunged what found support.
That’s right at the yearly central pivot point, which also coincided with the R2 level from the previous year look in the past and observe, how the yearly pivots represented important areas of support and resistance.
Pay attention to yearly Pivot points
Most of these levels are not visible on lower timeframes, so start paying attention to these levels.
And you might find some decent support and resistance levels for your setups.
- Powerful leading tool
- Look for Confluence for high probability setups
The third underrated, support and resistance is the round numbers.
Let’s face it we tend to use round numbers rather than uneven numbers, this also applies to technical analysis, where traders tend to round the numbers up or down in order to simplify things.
Look closely at these dax index chart, and you’ll notice how the price behaves to such psychological levels, you can see how well the price responds to such areas.
When the price approaches these levels, the number of transactions and trading volume both increase.
Here’s another example the goal chart pay attention to the price section around, all psychological numbers.
When you analyze the chart see, how the price behave around levels see, if the market stalled at that level and see, if we have any candle wicks around those levels.
Look at this area the markets stalled around this level, for six days before it finally broke to the upside, the next time the market reversed to that level it bounced immediately, as a lot of traders were trapped on the short side from, the previous battle around that number.
You can clearly see that the price was unable to continue, its downward trend right at this area, as the price finally managed to closed below, that level it stopped at another round number.
Here’s the EURO/USD we are approaching the 1.15 round number, we have four important candle wicks, at this level without considering the recent three candle wicks.
From the previous price action one round number lower, at one point one four level, we have around eight or nine candle wax personally.
I doubt that the price will continue to go lower around these levels, without any fight as in the past the price, reacted aggressively around those levels by themselves, all the support and resistance levels.
Powerful leading tool
Mentioned before will offer important information, but when combined, they become a powerful leading tool that will generate accurate entry points this is.
What we call a confluence, a conference is an area, with multiple support and resistance levels, although it might seem complicated finding conference on the chart is not so difficult.
Look for Confluence for high probability setups
You just have to train your eye to spot short areas, where multiple levels meet finding confluence on your charts, it’s very important.
Because these areas offer high probability training opportunities, after all if two or more relevant levels are coming together, at the same point in the market.
Okay, so that’s it I’ve come to the end of this presentation, I hope you’ve enjoyed it and if you really do please write a comment and click the share buttons smash it right, and click to subscribe bell to Allow notifications be updated.
Whenever, I publish content like, this and finally any questions or feedback let me know below and I’ll do my best to help, so with this guide, I hope you got value out of this presentation, I wish you good luck and good trading and I’ll talk to you soon you.