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.
Steps to place forex support and resistance zones
- Start on a higher time frame chart such as a daily.
- Place horizontal lines at swing highs and lows.
- 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
Daily market analysis and education.