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: The Euro has been trading within the upper and the lower trendline for sometime now, recently the price bounced off from the upper trendline towards the lower side at the corrective wave cycle four. Right now, the price is around the lower trendline rallying towards the upper trendl
Wave Analysis: The Great British Pound is currently trading in a contracting wedge formation, previously the price rebounded from the corrective wave cycle two towards the upper side at the impulsive wave cycle three. The price then bounced back at the lower trendline at the corrective wave cycle
Wave Analysis: During the previous trading days, this pair rallied around the upper trendline for a while but bounced back towards the lower trendline at the impulsive wave cycle three. As at now the price on the upper trendline at the corrective wave cycle three, I expect a bearish momentum towar