1. Recognise the structure
Higher highs and higher lows describe an uptrend; lower highs and lower lows describe a downtrend. A range reflects movement between areas of prior reaction. These observations do not predict the next move.
2. Use zones
Support and resistance are areas of earlier price reactions. They can break or produce false breakouts. Define your timeframe and confirmation rules before assessing the result.
3. Compare context
Review the economic calendar for both currencies. Inflation reports, employment data and central-bank decisions can change pricing quickly. Confirm the spread and whether the original entry remains valid.
A practical example
Compare the current session with the previous session high, low and range. Record the timeframe and quote source.
Key takeaways
- Compare swing highs and lows.
- Treat levels as zones.
- Keep session and timeframe visible.