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Mark Perfect Support and Resistance in famous Forex Pair - EUR USD
Identifying proper support and resistance levels is one of the most important abilities for every forex trader. When used correctly, this method can help you enter high-probability trades with confidence, particularly when trading large pairs like as EUR/USD.
The EUR/USD pair is one of the most liquid and actively traded currency pairings worldwide. Its behavior respects technical levels, making it appropriate for tactics based on indicators such as RSI. If you want to learn how to trade EUR/USD more accurately, this support and resistance strategy is a good place to start.
It is recommended to use eurusd chart on tradingview, so that you can directly get access to important indicators like RSI Divergence for your eurusd tradingview analysis.
A) Indicators to be Used
- RSI Divergence - To find Bullish and Bearish Trades
B) How to mark perfect Support using RSI Divergence
Follow these step-by-step rules to determine strong support levels:
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1. Identify Bullish RSI Divergence
Look for a situation in which the price makes lower lows while the RSI makes higher lows. This indicates that bullish momentum is growing below the surface.
You can simply identify using indicator as shown
2. Mark Points A, B, and C
Identify three critical points on both the RSI and the price charts. Point B is the pattern's neckline.
3. Wait for a break at the neckline. Before the low of Point C Breaks
This guarantees that the price confirms the divergence before trading lower.
4. When the neckline is broken, mark the low of Point C as your support
Also remove your indicator for a better view
5. This will become your primary level of support
At this level, price frequently bounces with strength.
C) How to mark perfect Resistance using RSI Divergence
Follow these step-by-step rules to determine strong resistance levels:
1. Identify Bearish RSI Divergence
Look for a situation in which the price makes higher highs while the RSI makes lower highs. This indicates that bearish momentum is growing above the surface.
You can simply identify using indicator as shown
2. Mark Points A, B, and C
Identify three critical points on both the RSI and the price charts. Point B is the pattern's neckline.
3. Wait for a break at the neckline. Before the high of Point C Breaks
This guarantees that the price confirms the divergence before trading higher.
4. When the neckline is broken, mark the high of Point C as your resistance
Also remove your indicator for a better view
5.This will become your primary level of resistance
At this level, price frequently falls with strength.
D) Frequently Asked Questions (FAQ’s)
1. Can RSI be used as a resistance and support indicator?
Certainly, RSI Divergence can also serve as a very effective support and resistance indicator, when considered with price structure. By combining RSI Divergence and price patterns, traders will be able to target reversal zones consistently and accurately- especially on the popular pairs like the EUR/USD.
2. What are the best indicators for day trading EUR/USD?
Some of best indicators for day trading EUR/USD are RSI (Relative Strength Index), Moving Averages, ATR (Average True Range), and Fibonacci levels. The method teaches about RSI divergence specifically, which works well in both intraday and daily setups.
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Contact :- +971 503056430
3. How does this strategy fit within the EUR/USD forecast?
This strategy adds value to your EUR/USD forecast by allowing you to determine entry zones for trades based on technical patterns. This is particularly useful when you combine it with fundamental news indicators and consider the higher time frame trends while trying to predict future bullish or bearish reversals.
4. Are trading indicators sufficient, or also price action?
Trading indicators, such as RSI, provide strong signals and when you combine indicators with price action - such as the A-B-C structure we referenced - you achieve a much greater degree of reliability. Indicators are just indicators, but structure provides context.
5. Is RSI one of the best indicators for determining support and resistance?
Yes! RSI is regarded as one of the very best indicators for day trading and determining support and resistance - especially when using divergence! It shows you when price momentum is weakening while price continues to push in the direction, giving you early warning for the possibility of reversals.
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