7-Day Trading Challenge: Support and Resistance Level Analysis Challenge

Monday: Launch of the Challenge

Today's mission: Understanding Levels of Support and Resistance
Today, we're going to lay the foundations for our challenge by familiarizing you with the fundamental concepts of support and resistance levels. These levels are areas where the price has historically rebounded or met resistance. Understanding how they work will help you make better trading decisions.

Tasks to be performed :

• Playback and Video :
  • Read a detailed article on support and resistance levels, and their importance in technical analysis.
  • Listen to our podcast which explains how to identify these levels on graphs.

Recommended resources :

• Article : A complete guide to Levels of Support and Resistance

• Podcast: How to identify support and resistance points in trading

• Configuring your chart :

  • Add drawing tools to your trading platform (MT4, TradingView, etc.), such as horizontal lines and rectangles.
  • Take a moment to add these levels to the charts of your favorite assets.

• Observation:
  Choose two assets (for example, EUR/USD and the Nasdaq 100 index) and observe support and resistance levels on different time units (H1, H4, D1).

Tuesday to Thursday: Analysis and Strategy

Three-day mission: Develop and test your trading strategy based on support and resistance levels

Tuesday: Identifying Support and Resistance levels

Today, focus on identifying support and resistance levels for your two chosen assets. Note where the price has bounced or rejected in the past. These will be your reference points for the days ahead.

Tasks to be performed :

• Locate key levels on the graphs and mark them.
• Analyze how the price behaves at these levels: does it bounce back, or does it cross them easily?

Wednesday: Determining entry and exit points

Use support and resistance levels to define your entry and exit points. Look for opportunities where the price bounces off a support level or encounters resistance.

Tasks to be performed :

• Identify trading opportunities based on levels: locate two entry points (one for a buy and one for a sell).
• Note the stop-loss and take-profit levels according to the distance from the support and resistance levels.

Thursday: Strategy development and backtesting

Based on your observations, devise a simple trading strategy based on support and resistance levels. Backtest the last few weeks to see how this strategy would have worked.

Tasks to be performed :

• Develop your strategy by clearly defining your entry, exit and risk management rules.
• Backtest the charts of your assets to test the effectiveness of your strategy.

Friday: Practice

Today's mission: Execute your trades
It's time to take action and put what you've learned into practice. Use the support and resistance levels to make your first real trades or demo trades.

Tasks to be performed :

• Place your trades according to your strategy.

• Be sure to set stop-loss and take-profit levels using support and resistance levels to manage your risk.

• Trading Journal :
  Keep a trading journal in which you record every trade you make. Include the reason for your entry, your stop-loss and take-profit levels, and the results obtained.

Saturday: Review and Adjustments

Today's mission: Analyze results and adjust your strategy
Today, you'll be analyzing the trades you made on Friday and adjusting your strategy according to the results.

Tasks to be performed :

• Review your trades: what went well? What adjustments can you make?

• Identify any support or resistance points you have misinterpreted or used incorrectly.

• Adjustments :

  • Modify your entry and exit criteria, or your stop-loss and take-profit levels, to improve your approach.
  • Backtest your strategy if necessary.

Sunday: Taking stock and sharing

Today's mission: Review the week and share your results
The last day of the challenge is dedicated to assessing your progress. Take a moment to reflect on your trading week and the lessons you've learned.

Tasks to be performed :

• Summary :
  • Write up a summary of your week: What objectives did you achieve? What strategies worked and why? What adjustments do you need to make for the coming weeks?
• Share :
  • Share your results, successes and challenges with the community. Use the hashtag #xenesy and tag @xenesy_project in your posts.
  • Encourage other participants to do the same, to create a dynamic community and share your thoughts on the analysis of support and resistance levels.

Conclusion

This challenge will help you master the analysis of support and resistance levels, which are essential for successful trading. By following these steps, you'll learn not only how to spot these levels, but also how to develop effective strategies based on these key markers. Remember, the key to trading success is practice and continuous adaptation of your strategy. Good luck to you all, and see you soon on the markets!