In this video:
00:32 – How to use and understand Support and Resistance levels.
01:14 – What are Support and Resistance levels.
01:45 – UK Oil (Brent Crude Oil) price bounces at 70.00
02:20 – Charts from 2026 – 2014 showing bounces at 70.00
03:20 – Identify setups at these important levels.
04:38 – Check out my new Masterclass.
05:03 – Talk with us.
05:13 – Blueberry Markets as a Forex Broker.
05:52 – How to contact me for trading help.
Do you realize how important support and resistance levels are? Do you know how to find them on your chart and how to take advantage of them to ensure you become a good trader? Let’s find out about that and more right now.
The traders, it’s Andrew Mitchem here at The Forex Trading Coach with video and podcast number 641.
Outside again on another beautiful winter’s day here in Nelson in New Zealand.
How to use and understand Support and Resistance levels.
So today I want to talk about support and resistance levels and how you can benefit from understanding them and using them in your trading.
Now, it’s very easy in hindsight to go and look at support and resistance levels, and it’s very easy to scan back through your charts and go, “Oh look, the price bounced there and it bounced there,” and you conveniently almost ignore other levels that potentially in real time could have also been useful support and resistance levels but didn’t actually do anything.
And so I find that a lot of people, you know, it’s a bit like Fibonacci levels. It’s something that’s very easy if you see a screenshot and ideal support and resistance levels, but in real time it potentially can be quite hard.
What are Support and Resistance levels.
So support and resistance levels, if you don’t know, are horizontal levels on your charts. And they are where historically prices bounced, reversed, stalled, etc. I tend to find that if you include a round number or look for round numbers, you’ll find that support and resistance levels tend to also form at those levels. Now you can go and find out all about round numbers from a video I’ve made just a few weeks ago.
UK Oil (Brent Crude Oil) price bounces at 70.00
But if you look at your charts, a classic example I’m going to use today is UKOil, UK Brent Crude Oil. Go and have a look at your charts while you’re watching or listening to this, and have a look at the 70 level. Now just last week at the beginning of July, you see that the price would have come down to 70 and has now bounced right now as we are speaking.
And so I’m going to put 4 screenshots up on screen for you right now for you to have a look at. Now, I’ve identified some of the support and resistance levels, not all of them. These charts you’re going to see right now are the UKOil daily chart.
Charts from 2026 – 2014 showing bounces at 70.00
So the first chart you’ll see is from now back to 2023. You’ll see I’ve identified levels where the price has reversed at that 70 level. The next chart you’re going to see will be from 2023 back to 2021. Again, I’ve identified some of those levels so you can see the importance of those price bounce levels. The next chart, this third one, will be 2021 back to 2017. Again, lots of examples here. I have not identified all of them. But just to give you an idea of support and resistance, again, all happening at exactly 70.
Then the fourth chart on screen right now is from 2017 all the way back to 2014. Again, lots and lots of examples. So here’s maybe 20-25 examples that I’ve just shown you there on the charts of 1 chart, 1 market, UK Brent Crude Oil bouncing at just that one level of 70.
Identify setups at these important levels.
Now don’t you think it would have been important last week to have looked at that chart? And by the way, the reason I’m talking about this is because I identified this exact thing to our clients on our forum site when we saw a buy trade on the market that you’ve just been looking at, and the price candle bounced at 70.
Now, the important thing to note here is you can’t just go and look at every time that the price bounces at a level and say, “Oh, it’s hit that level, I’m taking a buy trade again,” or “It’s gone through that and bounced at 70 and now I’m taking a sell trade.” You can’t do that. You still need to have a strategy, some logic. From my point of view, we use candle formations and a number of other things that we look at and teach here at The Forex Trading Coach. But the 70 level was hit, the candle bounced at that level, and then formed a good strong bullish candle.
So I put the 4 screenshots that you’ve just seen in front of you now on the forum site and said, “Look, here’s the reason. Not only the candle pattern in the right part of the chart, but now it’s bouncing at 70.” And hey, look, go back further in time and look at how important that level was. So the trade I actually took was a 12-hour chart trade. It’s a slightly longer time frame chart trade, and 70 was a massive level.
So if you’d like to find out more about how we do this and how we teach our clients from around the world, with clients in 111 countries, how to do this, if you’ve not been on my new masterclass, it’s around 15 minutes long. It’s on demand, so you can just jump on whenever you like.
Check out my new Masterclass.
I’ll put a link to that masterclass so you can get onto that and have a look at some examples exactly like I’ve just mentioned, and see some actual trades that we’ve taken as well. I’ll put a link to that masterclass.
Talk with us.
If you’d like to speak to us, you can book a call to speak to myself or one of my team, and I’ll put a link to that here as well.
Blueberry Markets as a Forex Broker.
If you’re out there looking for a really good, high-quality broker that offers 12-hour charts, such as the trade I’ve just mentioned, and markets like that, not only forex but metals, indices, cryptos, and commodities, I’ll put a link to Blueberry Markets as well. They’re based over in Australia, and pretty much anybody from most countries around the world can open an account with Blueberry Markets. I highly recommend them. Great people, great service, and very good spreads. Withdrawal speeds are incredible. I’ll put a link to them so you can consider Blueberry Markets if you’re out there looking for a good, high-quality broker to trade through.
How to contact me for trading help.
So that’s it for this week. Don’t forget to like, share, and subscribe. Any questions? Please email me directly at Andrew@TheForexTradingCoach.com. See you this time next week.
Bye for now.
Episode Title: #641: I Found a Trading Pattern That Repeats for Years