Support and Resistance
At Forexearlywarning we monitor support and resistance levels on 28 currency pairs. These price levels are reported in our trading plans every day. Look at the GBP/USD example below. You can set a price alarm at the support level indicated by the yellow line on the M15 time frame. When the currency pair drops below that line the price alarm will go off and you can then check The Forex Heatmap® to see if you have a valid entry point.
In this case the larger time frames, like the D1 time frame below, indicate that the trend is down and there is no nearby support below the alarm point. You can then estimate the pip potential of every trade and know your money management ratio. In this case there is over 300 pips of potential below the alarm point.
For a complete library of support and resistance examples you can check our blog.