Support and resistance system should only be used in a higher timeframe chart, like one hour and above. This is necessary because at such a higher time frame, brokers cannot manipulate the price to my disadvantage.
How I draw strong support and Resistance
Before I call a level strong, the same level must met the following conditions.
Again, when drawing my support and resistance levels, I use a range, not a single line, this is because price tends to test particular level before retrieving, range caters for these levels.
Wave Analysis Yesterday, euro continued slightly to the lowerside and is still pretty much bearish both on the daily and the weekly charts. As we mentioned in our previous forecasts, while price is below the upper trendline and also below 1.12630, we're looking for long term sell orders towards 1.
Wave Analysis After breaking below the supportive trend line, the cable corrected itself to the upper side but is still below this trend line, but above 1.2492. The level 1.2492 is a key daily support and as long as the price remains above it, we expect a possible bounce from it to pick a possible
Wave Analysis the US Dollar is still oscillating above 107.990. The level 107.99 is not only a weekly support, but also a daily support, which means, as long as the price is contained above it, we expect a possible long term from this level, the anticipated bullish price rally is the continuation