Hi! I am a beginner at FOREX and Ive met a problem. It happened that I have no any teacher, who could explain me some questions I have to understand everything myself from different books, sites And any system must be adjusted to me. I have understood it. I decided to choose the most popular way: Sell on resistances and buy on supports. And here is a question how to determine those levels of support and resistance?
Nicholas Darvas in his book describes one clear way to identify support and resistance levels. Mr. Darvas identifies support as the least price value in three consecutive days. Resistance level is the greatest price value in three consecutive days. For example if the least price values for Euro / USD are 141-142-140-141-143 then the support level is 140. Instead of three days you can use 5 days, four weeks, two hours or any number that you choose to identify different support levels at different time frames.
Post some charts here and try and draw some supp and res lines. The more you practice the better you get.