Been trying to figure out if checking old price movements actually helps with making better trades.
Spent some time looking at charts from past weeks but not sure if I’m seeing real patterns or just random stuff.
Does anyone actually use historical data effectively?
Charts definitely show useful patterns but you have to be careful not to see things that aren’t really there.
What works for me is looking at major support and resistance levels from the past month. These areas where price bounced multiple times tend to be reliable.
The key is keeping it simple and not overanalyzing every small movement on the chart.
Price history can reveal trends. I spotted significant levels with decent accuracy.
Historical data saved me from disaster more times than I can count.
Last month I spotted a resistance level on GBP/USD that had held for three weeks straight. Instead of fighting it, I traded the bounce and made 82% profit.
Without that history check, I would have lost money going against a strong level like I did when I first started trading.
Look at weekly and monthly timeframes instead of daily noise. Those patterns actually matter because big money moves around the same levels repeatedly.
My approach is finding where price rejected three or more times in the past two months. These spots work because institutions remember them too. Skip the complex indicators and focus on simple supply and demand zones.
One thing that changed my results was marking breakout levels that failed previously. When price comes back to test these areas, the reaction is usually strong enough for a profitable trade.