Reviewing Important Price Levels
for the Week
Learn how to review key support and resistance levels as part of weekly trading preparation, building on the earlier market analysis unit.
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Alongside scheduled events, reviewing important price levels for instruments on your watchlist is another practical part of weekly preparation. This guide builds on the earlier lesson on key support and resistance zones.
This is general educational content; identifying price levels does not predict how price will behave in relation to them.
Revisiting Support and Resistance
As covered in the How to Analyse a Market Before Trading unit, support and resistance zones represent price areas where a market has previously shown a tendency to react. Reviewing these zones for your watchlist instruments at the start of each week provides a useful reference point going into the days ahead.
Combining Price Levels with Market Phase
As covered in the Bull, Bear and Sideways Markets unit, the relevance and behaviour of support and resistance zones can vary depending on a market's current phase. Reviewing important price levels alongside a general sense of current market phase and trend strength provides more complete context than looking at price levels in isolation.
Considering Levels Alongside Scheduled Events
Important price levels take on additional relevance when considered alongside the scheduled events identified earlier in this unit's economic-calendar, earnings, and central bank event reviews. For example, being aware that a key support or resistance zone exists near current price, combined with an upcoming high-impact event, adds useful context for the scenario planning process covered next.
Levels Are Reference Points, Not Guarantees
As emphasized in the earlier lesson on support and resistance, these levels reflect historical tendency, not a guarantee of how price will behave when it approaches them. This important caveat applies equally when reviewing levels as part of weekly preparation.
🔖 Summary
Reviewing important price levels — such as key support and resistance zones — for watchlist instruments is a useful part of weekly preparation, particularly when combined with an awareness of current market phase and any scheduled events for the week. As with earlier lessons on this topic, these levels reflect historical tendency rather than a guarantee of future price behaviour.
Frequently Asked Questions
What are important price levels?
These generally refer to key support and resistance zones, covered in detail in the earlier market analysis unit, representing areas where price has historically shown a tendency to react.
Why review price levels alongside market phase?
Support and resistance zones can behave differently depending on current market phase and trend strength, so considering both together provides more complete context.
How do price levels relate to scheduled events?
Being aware of price levels near current price, combined with upcoming scheduled events, adds useful context for broader scenario planning.
Do price levels guarantee how price will react when it reaches them?
No, as covered in the earlier lesson on support and resistance, these levels reflect historical tendency rather than a guaranteed reaction.
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