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How To Draw Support And
Resistance Lines Correctly
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One of the rst skills you have to learn as a price action trader is how to draw support
and resistance lines (or levels as they’re sometimes called). Drawing correct support
and resistance lines is no easy task for a beginner trader. Many fail to learn the skill
correctly, and out of frustration scour the internet in search of an indicator which
will draw the lines for them automatically. Unfortunately, there is no support and
resistance indicator out there which will draw the correct lines on the chart, which
means the only hope these traders have of being able to use support and resistance
lines in their trading is if they learn how to draw the lines themselves.

If you’re one of the frustrated traders who can’t seem to ever draw the right support
and resistance lines on your charts, read on. Because in today’s article I’m going to
give you a step by step guide on how to easily identify and draw support and
resistance lines in the market. By the end of this article I can guarantee you’ll be able
to draw support and resistance lines like a pro, and will be able to start using them in
your trading.

Note:

I just want to make it clear that the support and resistance lines I’ll be showing you how to
draw in this article are not the same as the lines you can receive weekly by signing up to my
support and resistance levels service. The levels in the service are based o additional variables
which are not accounted for when drawing the lines I’ll be showing you today, which is why
they are found at di erent prices to one another. 
 

How To Identify Support And Resistance

Lines

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To start, I need to show you how to identify support and resistance lines on your
charts, because it’s one thing being able to draw the right lines, but another thing
entirely nding out where these lines are located in the rst place. Determining
where support and resistance lines are located is quite a simple process, although it’s
one which can be di cult if you have no knowledge of how support and resistance
lines work.

For those of you who don’t know, support and resistance lines are points where the
market has a high probability of reversing. The reason they have a high chance of
causing the market to reverse, is because the lines themselves are calculated from the
points where the market has reversed in the past. The idea is if the market has
reversed multiple times from roughly the same point in the past, then it has a good
chance of doing the same in the future. (You’ll see why later on)

This means all we need to do to identify where support and resistance lines are
located in the market, is look for the points where multiple reversals originated from
similar prices to one another.
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(https://dlb6879620p6s.cloudfront.net/wp-content/uploads/2017/03/Aviary-
Photo_131340843550387030.png)Here’s an image of 8 reversals which took place on
the 1 hour chart of AUD/USD.

You can see that each of the reversals above originated from prices which are quite
close to one another. This tells us that a support line must be found somewhere close
to where these reversals started, because in order for a support line to actually exist
in the market, multiple reversals must have originated from similar prices to one
another.
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(https://dlb6879620p6s.cloudfront.net/wp-content/uploads/2017/03/Aviary-
Photo_131340854529862695.png)In this image you can see 5 reversals which
occurred on the 1 hour chart of USD/JPY.

Again, each one of the reversals you see here started from similar prices to one
another, which means there’s a resistance line around here which we can locate and
draw on our charts.

Now that I’ve show you a couple of examples of how to identify support and
resistance lines, what I want to do next is run you through the process you have to go
through to determine where each type of line is found. Because although you nd
support and resistance lines in the same way, whether or not a line is a support line
or resistance line depends solely on where the reversals have formed in relation to
the current market price.

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NEXT

(https://www.forexmentor
online.com/easily-draw-
support-resistance-
lines/2/)

How Old Supply And Demand Zones Do Not Cause The Market To

Reverse And The Reason Why Traders Mistakenly Believe They Do
Why The Time It Takes For The Market To Return To A Supply Or
Demand Zone Will Determine Weather The Zone Has A High Chance
Of Causing A Reversal To Take Place
The Di erences Between Zones Created By Bank Traders Taking Pro ts
And Zones Created by The Bank Traders Placing Trades

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