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How to set macro support and resistance forex?

When trading forex, it is important to have a good understanding of market trends and price movements in order to make informed decisions. One way to do this is by using support and resistance levels. These levels are key points on a chart where the price is likely to either reverse or continue its trend. In this article, we will discuss how to set macro support and resistance levels for forex trading.

First, it is important to understand what support and resistance levels are. Support levels are areas on a chart where the price has historically found support and bounced back up. Resistance levels, on the other hand, are areas where the price has historically been rejected and bounced back down. These levels can be identified by looking at previous price movements and identifying key levels where the price has either stopped or reversed.

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Macro support and resistance levels are key levels on a chart that have a larger impact on price movements. These levels are often identified on higher timeframes, such as daily or weekly charts, and can have a significant impact on the overall trend of a currency pair.

To set macro support and resistance levels, you should start by looking at the longer-term trend of the currency pair you are trading. This will help you identify key levels where the price has historically found support or resistance. You can then use these levels to set your macro support and resistance levels.

To identify support levels, look for areas on the chart where the price has historically bounced back up. These areas will often be marked by a series of higher lows, indicating that buyers are stepping in at that level. Once you have identified these areas, draw a horizontal line across the chart to mark the support level.

To identify resistance levels, look for areas on the chart where the price has historically been rejected and bounced back down. These areas will often be marked by a series of lower highs, indicating that sellers are stepping in at that level. Once you have identified these areas, draw a horizontal line across the chart to mark the resistance level.

It is important to note that support and resistance levels are not exact prices, but rather areas on the chart where the price is likely to react. Therefore, it is important to give yourself some wiggle room when setting your support and resistance levels. You can do this by using a range of prices rather than a specific price point.

Once you have identified your macro support and resistance levels, you can use them to help you make trading decisions. For example, if the price is approaching a key resistance level, you may want to look for a short opportunity. On the other hand, if the price is approaching a key support level, you may want to look for a long opportunity.

In conclusion, setting macro support and resistance levels is an important part of forex trading. These levels can help you identify key areas on the chart where the price is likely to react, allowing you to make informed trading decisions. By identifying key support and resistance levels on higher timeframes, you can gain a better understanding of the overall trend of a currency pair and make more accurate trades.

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