How To USE ?!!!
What are these levels and how to use ?!
These are (static) support and resistance levels over the medium to long term. The market usually respects them strongly. For example: If the market sells off into support levels, a rally up is expected. Similarly; If the market rallies into resistance levels, a sell-off is expected.
How to use them?!
Wait until the price reaches the suggested support or resistance levels. Then, shifts down to the daily timeframe or below (H4 recommended). Look for a possible reversal pattern, either up or down. Ex. Bollinger Bands Reversal Patterns. Candlestick Reversal Patterns. Bullish/Bearish Divergence(s).This is not a signal to buy or sell. No…The idea behind this, you have a prior perception that the market might reverse its direction strongly. When the market moves in the expected direction. Then, you ride the trend or wait for a corrective pullback…
See this example:
We have a static resistance level on 1.2745. Weekly resistance of GBPUSD. See how the mark reacts to this level.
We got a double confirmation, from the daily and H4 timeframe…