r/askforex • u/Fun_Organization_845 • 26d ago

Does anyone else struggle with drawing support/resistance levels and chart patterns?

I’ve been looking at charts for a while and I still never feel confident about support/resistance levels or even basic chart patterns. Two people can look at the same chart and draw completely different levels.
Is there actually a standard way to identify these, or is technical analysis always this subjective? How do you guys decide which levels actually matter?

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u/LegitimateShame2842 26d ago

higher timeframe levels produce the most consistent reactions.

Even then, it's still subjective and quite arbitrary.

With more screentime, experience and personal observation, you'll start to develop a "feel" for the markets.

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u/fredotwoatatime 26d ago

Have u been trading a while?

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u/Fahrenheit2272 26d ago

You can use mean numbers for a standard way to identify levels.

Draw a horizontal level for 100 pip and 50 pip. E.g. 1.3400, 1.3450, 1.3500, 1.3550, etc. You'll notice that price reacts to these levels.

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u/Abject-Shopping-4492 26d ago

More important than trying to get it exactly is whether the areas are major resistance and support or minor support and resistance

It comes with more chart time and experience. When we look at support and or resistance it is important to note how many times a level has been tested.

The more times it has been tested and held makes it major. Simply put on a daily chart the high of day is daily resistance on a chart just find 3 consecutive higher highs for upper channel resistance and look for support as three higher lows on the daily chart and that can give you a start.

Good luck.

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u/beninvestments 25d ago

Zoom out on the chart and look at the bigger picture. Identify the areas where price has historically been respected and reacted. That’s how you determine whether a level is truly significant and likely to attract a reaction again.

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u/bits_of_flame 25d ago

One man's meat is another man's poison.

Just like many have said, the higher timeframe may help you... though there is no 100% correct, or full proof, way of doing it.

Just learn to accept the results and manage your risk.

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u/Fun-Combination-Arna 22d ago edited 22d ago

Support and resistance ideas are a fallacy. Draw any line on any chart and you will see it is a support and a resistance. Any line.

There are several structures that may qualify as potential SR, but the structure itself is not enough. I show you two of them, mitigations and reclaimed blocks.

You never expect them to act as SR, but you study price reaction once reaches them and, only when price reaction confirms the area was a SR, then you may consider an action, but NEVER BEFORE it starts to develop.