As the market develops I use a very simple way of drawing support and resistance levels that tell me where the mean reversions should pull price to. When price gets to these levels it’s then that we are noting failure or support. This is method is super simple. below is a chart example. Basically you start regression lines at key swing points. If you do not know what a key swing point is, we will talk about that more in the chat. Just remind me. Anyway see in the chart how I started the regression from the key swing points. Now look at where these “slope” lines intersect. That is where I draw a horizontal line as a mean level for the two swings. Now when price gets to that point we are looking for a bull or bear winner on the tape. Get it? (learn about these trading techniques at www.tradeinwaves.com)
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