We've held above the prior monthly and weekly on GBP/SGD.GBP/SGD is showing some signs of accumulation as we've held above monthly and weekly support in our current uptrend.
I like a test of previous monthly resistance indicated by the dashed white line.
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The S/R color coding system I'm developing for myself:
To see multiple timeframe levels at once, use a color coding system:
A. Light Blue: Weekly Levels (W)
B. Green: Daily Levels (D)
C. Purple: Monthly Levels and above (MO)
D. Orange: 3 day levels. (3D).
E. Red: (12 hour levels and below.)
Note: You can actually see higher timeframe levels by simply counting the number of candles when viewing the lower timeframes. I.e. count back 7 daily candles, look at where we've closed the last daily, and that's your weekly level.
1. The S/R system that I use involves examining trend on a multiple timeframe basis. The idea is that trend confirms and re-confirms itself as time goes on, or else the trend fails.
2. Support/Resistance Identification
A.To identify a level, I start by taking an area where at least "2" candles have closed at nearly the nearly the same price. This is how I identify support/resistance. The more closes at or near the same price, the more valid the level. But only "2" are required.
B. To be clear, the lines you see are NOT the S/R levels themselves. They are derived *from* the S/R level by taking it's high/low.
3. Color Coding for trend.
Then I take the high/low of that group and mark that as a color-coded level. I then expect price to come back and revisit that level, although it isn't necessary.
4. Range-Bound Trading.
Range-bound markets can be tough to trade because the trend can be difficult to identify. In range-bound conditions, I like to take good R/R trades at the lows or the highs of the range, and then exiting the trade at the opposite side. If the range breaks, however, you can then enter trades on the side of trend.
