The traditional front highs and lows

Perhaps the most important support and resistance levels are the previous highs and the previous lows. These are the levels you will see when looking at weekly or monthly charts. This way we can get a full picture of the market and key reversal points. Simply identify the levels where the price has reversed higher or lower and mark it with horizontal lines as shown below:

Then, to be more sure, you can draw more support & resistance lines on the daily chart, as shown in the figure below, the old levels will remain in place, but new levels appear on the weekly chart. can see:

The front vertices/bottoms form the ladder pattern

Have you heard the phrase “Old support becomes new resistance and old resistance becomes new support”? This is a form of a market where higher highs & lows form of lower highs & lows form, during an up or downtrend. Mark these levels again, and when price breaks up or down we can wait for the trade to bounce back, also known as a trade pullback. When you encounter this phenomenon, you may know that a sure trend exists.

The top/bottom first for risk management

In the example below, you notice the price breaks lower, falls below support, then it stays below it, and since then this level becomes a resistance level. We can either sell at this level or just below it if the price stays below. This way we can know where to wait for the next trade, and if the price gets past that level then our idea is completely useless, then it makes sense to place a stop loss just above that level. . In addition, we can manipulate nearby previous highs/lows as take profit points.

Variable support and resistance levels

Volatility is the level of movement, in other words, the moving average. A moving average moving up or down indicates price action. Here's an example of a 50-period exponential moving average (ema) used to detect downtrends and entry points:

The 21 ema line can also be used in a similar way, remember that the shorter the ema is, the more often the price interacts with ema, so in a less elastic market, you should use short cycle ema like 21. such as:

Trade range in support and resistance levels

Trade range in support and resistance levels can give us many opportunities to enter value orders against a price action Trader. The main idea is to first look for a range (prices only bounce between two certain parallel levels), then find a price action signal between these levels.
In the example image below, we have quite a large range since prices only fluctuate between support & resistance:

Event-based support & resistance zones

Event zones are critical levels of the market when a price action event occurs. It can be a strong reversal or an obvious price action signal, both of which lead to a strong direction in price.

On the example picture, you can see an event level formed after a strong bearish reversal candle on the weekly chart (there is also a strong bearish pin bar on the daily chart there). You need to mark this level again because it is an important level to wait for entry to sell at the blind entry or sell signal on a 1H or 4H or daily chart.