Spot Support and Resistance levels accurately

Support and resistance levels when used properly can make you profitable. Traders generally tend to have a very subjective method to spot levels in a chart. Finding the right levels could be a bit tricky if one doesn't know a reliable way to spot these.

Place a random horizontal line on the chart at any price and you will notice that it draws a level on the chart. This puts all your analysis to date on a question!

Now, let's talk about what you are here for.

Spotting Levels in a Trend

Market going in a Trend is referred to when The Chart forms either higher highs for the uptrend or lower low in a downtrend.

when the market is in a trend the opposite swings form a support level which and is highly accurate. 

Say the market is in an uptrend, so, the valley formed whilst making higher highs are to be considered into levels of the chart as support for the price to bounce off of.

A few examples are marked in the chart below.

If these levels are broken, the chances of trend reversal are really high. Keep these points in mind during trading with your own strategy, as These points will help you to make the right decisions.

Spotting Levels in General

There are many indicators available on the internet for all the platforms that offer really good indications of Chart levels. Using these indicators will make finding levels an easy task. 

You can also detect levels on your own just by looking at the points where market struggles a lot to get past.

Consider the Image below.

Notice how the price is having a hard time getting past 1794.266 price , Such points on the Chart are usually marked as support levels and a similar point but on the opposite side is called a resistance level.

In the image above you can see that the price is resisted back from the price 40546.79, so it is marked as a resistance level.

Supports when broken often act alike resistance level and resistance level when crossed also acts slike Support level.