Micro Support/Resistance: Precision Level Trading
Identifies short-term support and resistance levels from recent price action for precise entry and exit points.
What is Micro Support/Resistance?
Micro support and resistance trading focuses on short-term price levels rather than major historical levels. These are the recent swing highs and lows, consolidation zones, and intraday pivot points that create immediate barriers for price. Traders use these levels for precise entries and tight stop-losses, making them ideal for active day traders.
Key Characteristics
Recent price action: Focus on the last few hours or days. Swing points: Local highs and lows create levels. Precision entries: Tight stops possible near levels. Quick invalidation: Levels break more easily than major ones. Multiple timeframes: Combine micro with macro levels.
Identifying Micro Levels
Look for recent swing highs and lows on lower timeframes (5-minute to 1-hour charts). Areas where price has consolidated or paused multiple times become micro zones. The more times price has touched a level, the more significant it becomes. Also pay attention to round numbers and psychological levels within your trading range.
Trading Micro Levels
Enter trades when price approaches a micro level and shows rejection. This could be a long wick, a failed break, or a reversal candlestick pattern. Set your stop-loss just beyond the level—since these are tight levels, your stop can be small. Target the opposite micro level for a clean risk-reward ratio. The key is being quick to exit if the level fails.
Practice Risk-Free
Master these concepts with paper trading before risking real capital.
Start Paper TradingDisclaimer: This article is for educational purposes only and does not constitute financial advice. Trading involves significant risk of loss. Cryptocurrency investments are volatile and high-risk. Always do your own research before making any investment decisions.