In this lecture
- A market recap and weekly analysis
- Types of levels
- Tips and tricks for marking levels
Lesson notes
The main types
- Horizontal support and resistance: prices where the market turned before.
- Dynamic levels: trendlines and moving averages that move with price.
- Supply and demand zones: areas where a strong move started.
- Round numbers: such as 2000.00 on Gold or 1.1000 on EURUSD.
- Previous day, week and month high and low: levels many intraday traders watch.
Which levels are strongest
Levels from higher timeframes, levels with several clean reactions and levels where different types meet (for example a round number on a weekly high) attract the most orders.
Keep the chart clean
Mark the few levels closest to the current price that you would actually trade. Remove levels that price has passed through without reacting.
Khulasa (Roman Urdu / Hindi)
- Levels ki qismen: horizontal S/R, dynamic, supply/demand, round numbers.
- Pichle din, hafte aur mahine ka high/low ahem hai.
- Jahan do qism ke level milein, woh zyada mazboot.
- Chart saaf rakhein, sirf qareebi ahem levels.
Questions
What are the types of support and resistance?
Horizontal levels, dynamic levels (trendlines, moving averages), supply and demand zones, round numbers and previous highs and lows.
What is a dynamic support level?
A level that moves with price, such as a trendline or a moving average.
What is the difference between support/resistance and supply/demand?
S&R are prices where the market turned; supply and demand zones are areas where a strong move started. They often overlap.
Why do round numbers act as levels?
Many traders place orders at round prices, so price often reacts there.
Is the previous day's high and low important?
Yes. Many intraday traders use them for breakouts and reversals.
How many levels should be on my chart?
Only the two to four levels closest to price that you would actually trade.
Related lessons
Support and Resistance: how to draw it, and why it failsMarket Analysis
Market structure explained: the key to direction and entriesPrice Action Basics
The most important points for a price action traderEducation only, not financial advice. Trading forex, Gold and CFDs carries a high risk of loss. Examples are for learning; test any method on a demo or in a simulator before using real money.
Qazi Forex Tips