How do you determine whether a S/R level will hold or not

One hell of a thread and Cog, nicely explained..personally I work with PA and less with pivots but still nicely exp..

I like this this advise.

Hi, cogsx86,

I know this is an old post from an old thread. But if you don’t mind, can you share the latest support/resistance indicator for MT5 that you’re currently using? Also can you provide a link to that indicator so that I can keep up with the future updates?

Thank you so much for your time and help!

Shuo

Hey I currently dont use mt5, sorry I cant help you. Have you searched the mql code base?


https://www.mql5.com/en/code/mt5/indicators

Although this takes time, the best method, in my opinion, is to backtest and use probabilities.

Look at all different parameters of old S/R resistance levels such as:

 

1. Did it used to be a support level that has been broken and is now being tested for the first time as a resistance level?
2. Is it the second time the level has been tested?
3. Is it the third time the level has been tested?
4. Is it the fourth, fifth sixth, and so on time the level has been tested?
5. What happens when the level is tested with a shooting star / hammer?
6. What happens when the level is tested with an engulfing bar?
7. What happens when price dives in to the level, compared with it drifting in to the level?

If you backtest a number of pairs and split your data into various categories like the above, you may find that, for example, S/R levels produce a greater R when it is the second time they have been tested, compared with any other.

You may find that when they are tested with an engulfing bar they hold many more times than any other time.

You may find some very interested information that you can use to your advantage.

Worth the work.

The question is not "will a s/r level hold or break?".

The question should be "what happens after a s/r level holds or breaks?"

And I would add, Support and Resistance is NOT a trade signal...................

As I always say, "It's about What you want to see, Where you want to see it.". Support/Resistance can give you the Where, but you still need the What.

If it doesnt break it will hold. After a breakout price will either consolidate or will make a big move.

Hi, thank you to everyone who replies! Can someone attach a good support and resistance indicator for MT5? Thx!

Ya think?

No Firstly there is no such thing as 'significant support and resistance levels' its all in the mind because any phase or price of the market can become important resistance or support levels at any given time regardless if it breaks or hold any price.For example eur/usd currently trading at 1.2110 at the time of writing this can become an important resistance or support in future who knows.or the price trading tomorrow could become support or resistance.The markets prices Do not break hold or reverse because of ANY SPECIFIC support and resistance levels its designed to not follow those kind of rules.ITS designed to break any resistance or break any support levels regardless how important it was Before.However it does follow a rule of accumulation and distribution and that itself would determine where the price will follow.IF you know how to spot those accumulation and distribution phases.

S/R isn't a holy grail...

What time of day do most levels S/R break on your favorite pair? (what time of day is the big push to new levels)

Any big data on the day your trading your S/R level?

Is market being aggressive or does it look slow and tired?

What are the cross pairs doing? For example if your trading E/U what is E/J doing? what is e/g doing? what is e/a doing?

All things to consider when taking a trade at a level...
Be selective, don't take a trade because it touches your line....

Hope it helps

You can only determine it after the fact

In reality there is no support and resistance.just you have to accept the truth.

@dkrock "Support/resistance is a marketing scheme for banks to take your money." ... and not only S/R.

There are differing s/r levels for:-

1. Topping and basing
2 .Retracement and Reversal
3. Intraday midterm and long term trend.

During bullish market condition, resistant will be breached while support held. And support will be breached while resistant held during bearish trend. During ranging market condition PA will move in between intraday support and resistant levels before moving into midterm trend. Range may also happened within intraday s/r levels first before changing to midterm trend. Long term trend are more suited for options, hedging or investment because it is few and in between. Every pairs have their own unique s/r levels.

So it is imperative that we know and understand the various market conditions and the various pairs before one can know where all the s/r levels are and ONLY after this then can we devise a plan as to how to execute those trades accordingly together with using the most optimal RRR money management of at least more than 1:2. to exploit minimum risks and maximum profits.

Once you have attained this level of trading competency then you are in business in taking out some real serious money out from the market
.
Many have tried and most are still trying. Many have also given up trying and some have adopted other means trying to make money by teaching and guiding new traders on trading. Quite a handful of them resorted to various underhand methods to fleece and scam unsuspecting traders with false promise of huge profits using EAs and other schemes.

So far I have not found any robust system or method here in FF with those proficiency which I had described earlier despite innumerable claims of success and unproven efficacy. I even offered free trading funds but none have taken up the challenge.

Anyway my advise to the OP is its futile to search for the answer you are looking for here mainly becos most of them here are also looking for the same answer as you and for those who already knew the answer is not likely to divulge or share their knowledge with anyone especially those in a public forum. Worst if someone has other ulterior motives other than to help you. So be very cautious and learn to be self taught.

Cheers and God's luck.
GS