How to Place Forex Support and Resistance Zones

in LeoFinance •  3 months ago  (edited)

Direct from the desk of Dane Williams.



Are you trying to learn forex trading?

It all starts right here with my simple forex support and resistance strategy.

Within this guide, you'll learn my trading strategy that combines forex support and resistance with powerful price action setups.

It's time you became a consistently profitable forex trader.


How to Place Forex Support and Resistance Zones

Now we know what forex support and resistance zones are, it's time to talk about how to place them on our charts.

One mistake that many new forex traders make, is thinking of support and resistance in terms of a very specific price.

They see support and resistance drawn as hard horizontal lines and try to deal in exacts.

But support and resistance is much more of an art than a science and as a result, should be thought of in terms of zones.

Take a look at the example EUR/USD daily chart below.

Forex support and resistance zones

Steps to place forex support and resistance zones

  1. Start on a higher time frame chart such as a daily.
  2. Place horizontal lines at swing highs and lows.
  3. Add transparent rectangles down to candle bodies, turning levels into zones.

Remember, support/resistance is merely a guide that takes advantage of human nature, not a hard top or bottom of the market that can’t ever be broken.

Draw your forex support and resistance zones like this and then watch how the market reacts to them the next time that price returns.


If you have any questions around how to place forex support and resistance zones, then leave a comment below and I'll be happy to have a chat.

Best of probabilities to you,

Dane.



FOREX BROKR | LeoFinance Blog
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Those are some mean support / resistance lines...love it.

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Just trying to lay the foundation to my analysis.

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It looks so volatile for a few pennies, I guess you use leverage to trade this way.
Or lots of contracts?

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Wait until I get to the entries and exits section of this trading strategy, but you'll see that I'm not blindly buying support and selling resistance.

Whether price is above or below a support/resistance zone on the daily is merely the first step to determine which direction is the safest to trade.

Give it a few more posts to come together ;)

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I will draw two lines of profitability and loss and note daily chart.
And then, I will trade.
Is you mean that?

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No no. Drawing support and resistance lines on the daily chart is merely a guide for which direction is most safe to trade.

Wait until I start discussing entries and exits later in the trading guide.

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Thank you so much.
Be happy!

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