Support and Resistance Strategy: How to Find Key Levels in Forex
Support and resistance is the backbone of technical analysis. When you can mark levels that institutions care about, you trade with clearer targets and tighter risk.
What is support and resistance?
Support is a zone where buying interest tends to stop price from falling. Resistance is where selling interest tends to stop price from rising.
Step-by-step: how to mark key levels
- Start with the daily chart.
- Mark major swing highs and lows.
- Switch to 4H and refine levels.
- Keep only the 3 to 5 strongest levels.
The four most reliable level types
- Swing highs and lows
- Round numbers (1.0800, 1.0900)
- Prior day or week high and low
- Dynamic levels (200 EMA, trendlines)
Role reversal
A broken resistance often becomes support. This is one of the highest probability setups.
Entry techniques
Break and retest
- Wait for a clean break
- Enter on the retest with a rejection candle
Bounce from range
- Buy near support and sell near resistance
- Keep stops tight outside the range
Confluence entry
Combine support or resistance with:
- Candlestick pattern confirmation
- Moving average alignment
- Higher timeframe trend
Stop loss and targets
- Place stops beyond the level, not on it.
- Target the next major level to keep risk reward at least 1:2.
Common mistakes
- Drawing too many lines
- Ignoring higher timeframe structure
- Entering before confirmation
Practice faster with the Support and Resistance game
Train your eye with Support and Resistance to build instant pattern recognition.
Next Steps
- Candlestick Patterns Guide - Add confirmation to levels
- Risk Management Guide - Size trades correctly
- Support and Resistance Strategy - See the full playbook
About the Author: Pip Campus Technical Analysis Team - Focused on clean, repeatable structure.
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Tags
#Support and Resistance#Price Action#Key Levels#Technical Analysis#Forex Trading