Placing SR should be a simple process that takes up only a little of your time. Agonising over the placement of SR can be a time sink and often leads to over thinking.
When it comes to SR, the most obvious areas will be the most powerful. This is because a large portion of traders will also see these levels and react to them.
So, any obscure or minor SR you place and then look to trade from can actually cause more lost trades.
We have condensed the process of placing SR areas into three easy to follow steps that will help you streamline your time spent as well as finding the most powerful support and resistance.
1. Open a daily chart and zoom out until you see 3-4 months of candles.
2. Place an area at the top and bottom most extreme bounces.
3. Add areas between the top and bottom most by connecting the dots.
Practice placing SR areas and you will improve – it’s as simple as that.