I look for the sweet spots on forex charts. I like to find obvious support and resistance zones. These are spots where we see a zone that has served as both support AND resistance.
As a technical trader I completely rely upon the chart for my trade setups. Fundamental analysis is difficult to understand, and since every “expert” seems to have a different opinion about the real meaning behind each economic report, it makes it much easier to follow the chart.
So, what do I look at on the chart? I find support and resistance zones to be invaluable, for me, these are the most important spots on the chart. When I see a zone like the one above, where price has repeatedly reversed, I take note. I do not expect price to reverse at these zones, but I get ready, because price may reverse at these zones.
What do you think will happen on the above chart? Will price turn around again? I will take another look at this chart tomorrow.
