How To Draw Support and Resistance

Horizontal Support and Resistance Levels:

These are drawn using horizontal lines based on price points.

Support Levels: Identify areas where the market had difficulty breaking below. These levels often have a cluster of buy orders.

Resistance Levels: Represent price points where the market struggled to break above. Sellers tend to enter around these levels.

Round-Number Levels (Psychological Levels):

These occur around round exchange rates (e.g., 1.00, 1.10, 1.50).
Traders pay attention to these levels due to their psychological significance.

Trendline Support and Resistance:

Draw upward or downward sloping trendlines using at least two price points.

Trendlines help identify dynamic support and resistance.