Price on the AUDUSD has now fallen lower and into a key daily support level. This level had previously acted as a key resistance and price had struggled to break through, but once price burst through and moved higher it started acting as a price flip point and is now looking to act as a new key support level.
If this support level holds, traders could start looking for long trades should any solid A+ price action signals present. Traders could hunt for trades on their daily and intraday charts such as 4hr and 8hr charts. If you are unsure how to change your time frames on your MT4 platform to make any time frame you want read here: Change your MT4 time frame to any time frame you need
If this support levels gives way and price falls back through, traders could look for it to act as a flip point and once again start acting as a key resistance level.
AUDUSD Daily Chart
How to determin flip point can happen ?? and i think you should use volume in analysis ??
Learn how to mark key levels and flips by going through: https://www.forexschoolonline.com//trade-forex-like-a-sniper-and-start-trading-from-kill-zones/
Volume analysis is almost impossible to apply in Forex unlike other markets such as Stocks. Forex has not central exchange unlike other markets such as stocks so there is no central indicator for volume. Every broker uses different groups of liquidity providers for their data and to fill orders and others simply fill their own data so the volume will be different.
is it really important to mark support and resistance only from flip point??
Hello Fazily,
it is really important you mark all your levels on the daily charts and only have two key levels per charts. It is also very important that you make all your intraday trades such as your 1hr & 4hr trades from the key support and resistance level you have marked on your daily charts. This will keep you out off rubbish and poor support and resistance levels. To learn about this read the three following articles:
1: https://www.forexschoolonline.com//support-and-resistance-the-key-to-price-action-trading-forex-lesson/ 2: https://www.forexschoolonline.com//trade-forex-like-a-sniper-and-start-trading-from-kill-zones/ 3: https://www.forexschoolonline.com//price-action-guide-to-how-the-forex-market-moves-trading-lesson/
Safe trading,
Johnathon
thanks a lot sir 🙂