Finding support and resistance levels on a chart without indicators involves looking for areas where the price of an asset has previously reversed or stalled. Here are a few steps you can follow:
- Identify key swing highs and lows: Look for areas on the chart where the price has previously reversed, either forming a high or a low. These are known as swing highs and swing lows.
- Draw horizontal lines at these levels: Draw a horizontal line at each swing high and swing low. These lines will represent the support and resistance levels.
- Look for areas of congestion: Look for areas on the chart where the price has previously stalled or traded sideways. These areas can also represent support and resistance levels.
- Use trendlines: Draw trendlines on the chart to connect the swing highs or lows. These trendlines can also represent support and resistance levels.
- Monitor price action: Watch how the price reacts when it approaches these levels. If the price bounces off a support or resistance level multiple times, it is likely a strong level.
It's important to note that finding support and resistance levels without indicators is a subjective process and different traders may identify different levels. Additionally, it's recommended to use technical indicators and analysis in conjunction with these levels to get a more comprehensive view of the market and make informed trading decisions.