This establishes your heavy selling and buying points and your minor buying and selling points. Price action and learning price action is now what you base your entry’s, stop loss and target points on; which by the way is another lesson all to itself. Now you’re set and as price make’s it way to and through these levels you can simply update them as needed keeping the 4 or so above price and the 4 below.

The next step is a simple process of maybe adding your trend lines and look for confluence between your horizontal support and resistance map and the angular view from trend lines. In these next few examples we’ll apply a few trend lines, we just don’t want to over do it and add so much to our charts it becomes unreadable and confusing. Its like the old saying of “if you give people too many choices they wont be able to make one” and this is true in trading.
The simplest way to apply trend lines are to look for the last 2 high points and the last 2 low points and connect them, these will also have to moved as price moves to keep pace with price movements. We’ll use the same approach as starting from the Daily chart and mark the most recent points there and then back to the 1 hour to mark the minor points.First the Daily chart and the most recent Daily highs and lows. In figure 6 I’ve marked the most obvious points. That’s something you should consider when placing trend lines as well as support and resistance levels and that’s “if you are not certain or it isn’t