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The other thing to remember when looking to use previous S&R is that the higher timeframes rule so if you have some levels on the 1 hour chart these levels are not as powerful as levels you get from the 4 hour or daily chart. This is important if you are looking to go short from a level from the 1 hour chart for example but you notice that price is in fact coming up from a really strong looking support from a higher timeframe such as 4 hour or even daily. You may want to stay out of that trade.
Never be confused when you see different timeframes telling you different things, just remember higher timeframes rule and no singular thing will ever tell you enough information for you to take trades. It’s really important to get into the habit of looking for multiple reasons to make a certain decision whether that’s an entry level or a direction to trade in or even whether or not to trade at all, if you look for many reasons you will be ok and that is exactly what this course is designed to help you do!
In summary, previous levels of support or resistance are actually quite easy to spot once you know how. Once you understand how to find them on your price chart just take some time to practice looking for confluences or other recognized support and resistance levels such as Pivots or Fibonacci levels that coincide with these levels and more importantly watch what happens when price approaches these levels.
Once you start seeing how price reacts to these levels on a daily basis your confidence will increase exponentially.
Once you have this confidence, your next task is to find a way of trading these levels that you can follow consistently on a day to day basis.
I have mentioned looking for confluences involving things such as Pivot points and Fibonacci retracements, so now I will go into much more detail on how to use these tools in your trading.
Next: How to Use Fibonacci