Step 1: Marking Key Price Levels on MT5
1. Support & Resistance Levels
Support: A level where price has previously bounced up.
Resistance: A level where price has previously been rejected downward.
How to Identify on MT5:
- Open your chart and switch to a higher timeframe (H1 or H4).
- Look for areas where price repeatedly reversed.
- Use the Horizontal Line Tool (Insert > Objects > Horizontal Line) to mark these levels.
- Switch back to your trading timeframe (M5 or M15) and see how price reacts near these levels.
🚀 Tip: The more times price touches a level and reverses, the stronger it is.
2. Psychological (Round Number) Levels
These are price levels that end in .00 or .50 (e.g., 1.1000, 1.1050 for EUR/USD). Traders naturally place orders around these levels, making them strong areas of interest.
How to Use on MT5:
- Open Market Watch (Ctrl+M) to see current price.
- Add horizontal lines at round numbers near the current price.
💡 Example:
If EUR/USD is at 1.1032, mark 1.1000 and 1.1050 to see if price reacts at these levels.