Take a free trading course with IG Academy. Thank You So Much. Develop your trading knowledge with our expert-led webinars and in-person seminars on a huge range of topics. Should the level be placed at the highs or lows of each candlestick or at the body? Am greatful for your undiluted insight about tradethe market. Dukascopy FX Article contest is a unique competition elaborated for participants simultaneously passionate about Forex and writing about it.
Key levels occur in a variety of market scenarios, and we can combine these key market levels with simple price action strategies to obtain a high-probability trading strategy. Key market levels are the core foundation of all technical analysis and price action trading.
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Rohani May 26, at 3: Dear Nial, Awesome write up. May God bless you more. Awofeso May 15, at 7: Udoaka May 6, at James Nkalubo April 1, at 6: Eve January 4, at 1: Wellness trading for wellness life Reply.
Sachith November 22, at 8: Thanks Niel for all your post so far. I am new in the game. Although I have a little experience. I need to know how to get my key support and resistance regions. Raj Jadeja June 21, at 7: Simply awesome, Nial Raj Reply. Sudip Ahmed March 13, at 1: Hi Nial your website is great Reply. Galen December 19, at Good read Nial Reply. Gurpal December 17, at Hi Nial, Hope you are well. Thank you for another fantastic and awesome lesson.
Thank you for all your help Thanks and Regards Gurpal Reply. May God bless u more Reply. Henry Supriyanto December 12, at Thanks Nial…make me very clear… Reply. Anthony uche December 11, at 7: This is amazing, wonderful writup, remaim blessed nial and merry christmas in advance. Mohammad Kavoshnia December 11, at Hi Nial, A very useful and informative e-mail;thanks.
December 11, at 8: Nial, Thanks for this Christmas present. Hope Santa is half as nice to me! Hi Nial Great Lesson as always. Dorcas December 11, at 2: You are a nice man. I like this article Reply. Thanks, but i like to see it on video,is easy for me. Craig December 9, at 7: Thank you for all the effort you take to educate us Nial. You are a great mentor.
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Michael D December 9, at 1: Another very good lesson Nial. Keith from england December 9, at 1: Kav December 9, at Tony December 9, at George December 9, at Lucas December 9, at I must say there is much learning in just by looking at the charts than placing trading it takes patients for one to know how to spot swing points and entry and exit points and eventually the whole thing becomes a part of you like a religion or something of sort you live breathe dream it until it becomes effortless thanks Nial Reply.
Lionell Dixon December 8, at 9: Greg December 8, at 9: Maurice December 8, at 9: The key points and methods I talked about above apply to any instrument, any time frame, or environment. This is a big subject that cannot be unpacked fully or well in a single article. Did you find this support and resistance level article useful and learn something new? I'm a verified profitable trader and trading mentor. As a professional trader, I specialize in trading Price Action and the Ichimoku cloud.
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If you sign up for the service offered by the site, we may receive a 1x fee under specified conditions. We simply receive a 1x fee for you signing up and funding a new live account under specified conditions. Sign up now to receive a free ebook on How to Get an Edge trading the Forex markets. As a bonus for signing up, you will also get exclusive access to our monthly newsletter, which contains insights not published on the website. Common questions struggling traders ask are: How Professional Traders Relate to Support and Resistance Levels Anyone who has seen how professional traders trade know they often place their orders ahead of time and less often do market orders.
From an order flow perspective, this is because if the sellers are heavily in control, the buyers will have to overwhelm the sellers, and this requires a lot more money and orders then the current bears in control. This is the reason why V-bottoms are more rare than common. Trading With Trend Increases the Probabilities You might have noticed with the chart above, that trading with trend was more powerful than trading counter-trend.
As a whole, counter-trend trades are a lesser probability trade, so they take more skill, experience, and precision. This is simply because you are trading against the majority of the order flow, so the odds are already stacked against you. Now if you are in a range, then there is no dominant trend, so trading reversal type plays are suggested, particularly at the tops and bottoms of the range.
But when a strong trend is in play like the one above, you will find greater profit potential and accuracy trading with trend instead of counter trend.
In a strong trend, the larger players are just looking for key levels as areas they can get in with trend. This is traditionally known as a breakout pullback setup , and generally does not need two touches off the level to confirm its effectiveness. Because likely, in a trend, there will be a support or resistance level that is already being challenged, which would confirm there are buyers or sellers at the level trying to defend it, while the other side is attacking it.
Once it breaks, the with trend traders often look for a pullback towards this level to get back in with trend. A great example of this is in the chart below. Using the chart above, starting with the bottom left, price climbs consistently, gapping up, but then forming a resistance area at A.
After a brief pullback, we can see price breaks through forming a new SH swing high. The pullback at B which forms the next resistance high, dips just below the 20ema and forms a with trend pin bar. This marks the new impulsive leg up towards After a marginal break higher, price pulls back and forms another with trend pin bar below the 20ema, which starts another up leg towards a resistance at C.
Keep in mind, in all of these with trend pullbacks, the market pulled back towards the levle that it hat the strongest rejection from at A, B and C. The strong rejections at those levels are counter-trend players, trying to stop the trend. But when the bears tried to get past the last major resistance, now turned support forming a role reversal level , the bulls used this as an opportunity to get long. Yet in almost every case where the market formed a resistance, when the market attacked that level again, the sellers failed to hold the level.
This is because they were going against the major order flow, which highlights how much easier it is to find key support and resistance levels that work when you are trading with trend, and not counter trend. So hopefully this highlights the difference.
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Finding key levels, and major support and resistance trading levels is not some Da Vinci code type endeavor. Two key things which really help this are using the two touch rule, along with trading more with trend than counter trend. 2ndSkiesForex online articles are here to help you learn to trade forex. In this article, learn what key support and resistance levels are and how they can work for you. Justin Bennett is a Forex trader, coach and founder of Daily Price Action, the world's most popular Forex price action blog. He began trading equities and ETFs in and later transitioned to Forex in His "aha" moment came in when he discovered the simple yet profitable technical patterns he teaches today. Justin has now taught more than 2, students from over 70 countries in the Daily Price .