Lesson 6 of 28
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Horizontal support and resitance

• You want to see multiple touches onto the support or resistance on a high term time frame (monthly, weekly, daily)

• You must master horizontal levels before proceeding to more advanced tools.

Many traders overlook horizontal support and resistances. But basics are more pivotal in trading than advanced theories! Some levels requires more experience as they might seem washed out and not important anymore, but they could become important in some cases. If you mark out an incorrect horizontal level, you will likely loose money Never trade of horizontals alone, always seek for confluence (e.g. Fibonacci retracement which is also horizontals)

How to spot horizontals:

TV Start on higher time frames (HTF) and work your way down (monthly ⮕ weekly ⮕ daily ) The higher the timeframe the bigger the support/resistance `is“

We are looking for levels which has got several touches (at least 2 touches on the monthly) For a touch is intended when the candle body does not close above the level Support and resistance levels are levels where price doesn’t stay there for an extended amount of time

Three weeks in a row on the same level: massive support On massive monthly levels, identified by multiple touches, price can also come close and make a retracement without even touching them

Some of the monthly levels can be redefined by looking at the weekly timeframe, if they don’t look quite right

Always look to the left before going to the right (most relevant levels are the recent ones on the right of the chart, but sometimes levels can be adjusted by looking at previous important levels on the left of the chart) Levels are chart specific, each asset handle levels differently