Power Course Instructor’s Response:
Good question...
Looking at a Daily chart first and then determining the S/R levels on that chart is the way to go. Then looking at successively smaller time frames, 4 hour and a 1 hour and see how the S/R levels on the various charts compare will provide a good overall feel for the pair. S/R levels appearing on successive charts
Look at the most recent part of the chart first and see what starts to present itself to your eye and makes sense as a Support and Resistance level. As you determine recent levels, one can look back in the chart and see if those levels appear at other points on the chart.
After a while, this will become second nature.
Take a look at the GBPJPY chart below...
Very soon this pair will either close above resistance or below support as represented on the chart.
If a candle closes below support, a short position can be taken as that is the direction of the trend on the chart.
If a candle closes above resistance, the pair is continuing to build higher highs and higher lows which is a bullish sign. Personally, before I take a long position on this pair, I would want to see additional levels of resistance taken out to confirm the bullish pattern.
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