🔷 Specifics of trading from levels

Key price levels are present in any financial market, including Forex. Often, these
horizontal lines act as either support or resistance to further price movement, which is
why traders are so interested in them. These key lines are formed due to the large
accumulation of buy and sell orders. When the price reaches such a congestion, the
current strength of the trend, as a rule, is not enough to close all these orders and
move the price further.

Therefore, if the movement does not get support, the price will turn in the opposite
direction. If there are new volumes that are able to break through a great
accumulation of orders, it is likely to happen that the trend strength is enough for the
further movement, i.e. a strong breakout level will occur. Of course, events do not
always develop only according to these scenarios, but these are the two most likely
variants. There are big players at the market whose orders influence the price due to
big volumes. Because of this, experienced traders only need to correctly identify such
levels and signals that the price is most likely to reverse. The classic level is an area
based on the opening or closing candlestick prices (not the high/low), which the chart
has already touched before. That is, if the chart, having risen to a certain level, rolled
back and then approached that level again, the price value at the extreme point will
be that level.

🔷 Entering the market

The main condition for entering the trade at the reversal from the level, it is
necessary to make sure that it is exactly the reversal. If the price is just approaching
the key level, it is too early to open a trade. The trader must form a reversal pattern
of Price Action in order to be sure that the position opening is correct.
It may be the following patterns:

1. A Pinbar (a candlestick with a long shadow, level breakout and a small body);
2. Engulfing (the next candlestick is directed in the opposite direction, its body and
shadows are bigger than those of the previous candlestick);
3. Tweezer top/bottom pattern (alternation of bullish and bearish candlesticks with
the same lows and highs);
Once the pattern is formed, a trade can be opened.