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7 TYPE OF SUPPORT AND RESISTANCE (2. Stepping Swing Point Levels In Trends…
7 TYPE OF SUPPORT AND RESISTANCE
1. Traditional Swing High And Lows
Use time frame weekly or monthly
the first thing you should do when analyzing any chart
Major turning point within this frame
Simply identify the obvious levels that price either reversed higher or lower at and draw horizontal lines at them
Here we can identify major support and resistance levels, trends and trading ranges
Daily Time Frame
The daily chart is the primary time frame for finding trade setups
when you zoom into the daily or even the 4 hour or 1 hour, you always leave the higher time frame levels on your chart as they are very important
2. Stepping Swing Point Levels In Trends
Higher high on up trend
Lower low on down trend
Those market phenomenom make a "stepping" levels
when you see this stepping phenomenon you know you have a solid trend in place.
These levels are good entry points as well as points to define risk or stop loss points. You can place your stop loss on other side of these levels
3. Swing point levels as containment and risk management
Markets spend much of their time consolidating and in trading ranges
find trades within those market conditions, not only in trends.
4. Dinamic Support Resistance Levels
Using Moving Average
EMA 21 or 50 on daily time frame
5. 50% Retracement Level
Markets often hold the halfway point of a swing (circa 50 to 55% area), where market makes giant moves, retraces, then bounces in original direction
6. Trading range support and resistance levels
Trading range support and resistance levels can provide many high-probability entry opportunities for the savvy price action trader
The main idea is to first identify a trading range, which is basically just price bouncing between two parallel levels in the market, and then look for price action signals at those levels or look to fade the level on a blind entry
7. Event Area Support And Resistance
Event areas are key levels in the market where a major price action event occurred
This can be a big reversal or clear price action signal either of which led to a strong directional move.