Major And Minor Support And Resistance

There are two type of support and resistance. Major and minor levels.

The reason this is important to understand is in placing a trade and deciding whether to keep a trade open or not.

Figure A.

This is USDCHF on the weekly timeframe.

I have identify a major level of support and resistance based on prices reaction. Typically I identify them on weekly timeframe or daily timeframe,

They help a me to anticipate changes in the direction of price.

This is important because one of the first reasons why trades lose is because of "Incorrect Direction" A trader thinks the markets going to go up and it went down and vice versa.

Identifying Major levels of support and resistance limits the chances of that happening