Drawing Support and Resistance – Planning the Trading Week Ahead.
Todays Video Talks about how to Draw Support and Resistance on Your Forex Charts. Every Sunday, traders should draw support and resistance levels and plan the trading week ahead, it’s something I have done for years, and it works! This video will explain how to draw the levels correctly on the EURUSD currency pair. Enjoy the Tutorial.
Video Synopsis – Drawing Support and Resistance – Planning the Trading Week
This video discusses how to draw support and resistance levels on your charts in order to plan for the upcoming trading week. Every Sunday afternoon I take the time to go through the charts and plot my key support and resistance levels, look for any relevant price action, turning points or swing points. The best thing you can do is plot your levels out on the daily chart before the week begins and every day after the markets close in New York.
The chart in this video is the EURUSD daily chart, one of the first things I do when drawing S & R levels is to mark the major turning or swing points in the market, these are the obvious “pointy” parts on the chart where the market made an obvious change of direction. I marked 6 key levels or swing points on the chart in this video, however that’s not enough, we also need to draw in horizontal lines to connect these key market swing points.
It is best to think of these support and resistance levels as “areas” instead of exact price levels, this allows you to have some leeway with your stop placement. I also draw in the “interim” levels on the chart after drawing in the major S&R levels, these “interim” levels are smaller or perhaps less significant support and resistance levels on the chart.
This video was meant to explain how to draw support and resistance on a forex chart and also how I go a little bit deeper to draw the less obvious “interim” or in-between levels in the market.