Finding a level
Lesson 2 of 4 · about 6 minutes
2 questions, each checked the moment you answer it.
5 steps · about 6 minutes
The interactive lesson walks these ideas one screen at a time and checks your answers as you go. The text below covers the same ground for reading.
A level is a price where the market turned more than once
Price bounced back up from around 1.1000 three times. Traders watch levels like this to see whether price bounces again or falls below the level.
Pips measure the gap between two prices
On EUR/USD, one pip is 0.0001. To measure the distance between two prices on a chart, subtract the lower from the higher and read the answer in pips. The prices in the picture are a teaching example: 1.1015 minus 1.1000 is 0.0015, which is 15 pips.
A real level is a band a few pips wide
Real EUR/USD from July 2026, doing the same thing: three falls into the same area, three turns. Real turns never land on the same price to the pip, so this course fixes a width: two turns count as the same price when they are within 10 pips of each other. Work it here. The three lows are 1.13635, 1.13668 and 1.13613, printed on the chart. The widest gap is 1.13668 minus 1.13613, which is 0.00055, or 5.5 pips. That is inside the 10, so all three count as one price and the line is drawn through them at 1.1364. Now fail the same test: a turn at 1.13848 would sit 0.00180 above the highest of the three, which is 18 pips. That is over the 10, so it would be a different price and no part of this level.