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S and R levels

  • #1
  • First Post: Apr 24, 2016 6:56pm Apr 24, 2016 6:56pm
support and resistance,

How far backare the support and resistance levels valid, , lets say on the one hour chart when you minimize the chart to see , days, weeks or months , how far back do we take the S and R levels into consideration ?
  • #2
  • Apr 24, 2016 8:29pm Apr 24, 2016 8:29pm
Quoting Hanoverfiste
support and resistance, How far backare the support and resistance levels valid, , lets say on the one hour chart when you minimize the chart to see , days, weeks or months , how far back do we take the S and R levels into consideration ?
The first s/r you should look at is the high, low, midpoint, open and close of the immediate bar prior on the your trading timeframe. Then go to the next higher time frame and look at that bar. That is the simplest way to start. The higher the time frame, the more significant the support and resistance.
If you are good at something, never do it for free--Joker
  • #3
  • Apr 25, 2016 12:05am Apr 25, 2016 12:05am
Quoting Hanoverfiste
support and resistance, How far backare the support and resistance levels valid, , lets say on the one hour chart when you minimize the chart to see , days, weeks or months , how far back do we take the S and R levels into consideration ?
A newbie can find dozens of those levels on the chart, basically we all have own interpretation of the market, graphs and lines. Based on my experience round numbers, and daily open-close S/Rs are best to work on
  • #4
  • Apr 25, 2016 4:28am Apr 25, 2016 4:28am
Generally I am willing to take even Monthly resistance levels into consideration if and when the pair I am trading approaches them. It all depends on the kind of strategy you're using and where exactly the pair you're trading is at the moment. For the most part, however, I look at the daily support and resistance levels.
  • #5
  • Apr 25, 2016 6:18am Apr 25, 2016 6:18am
Support and resistance are arbitrary levels, as at some point in time they will be tested, retested, and broken.

Because of this, I think it is best to only look at the support and resistance on my screen, and tie it in with the direction and momentum of the market.

Of course you could go back 100 years, and you will see that there is a s/r level that is respected... but that is not necessarily anything to do with market sentiment, only coincidence...

I think most traders would only look at recent s/r to support a decision- and recent is only relative to the timeframe you are trading.
  • #6
  • Apr 25, 2016 8:21am Apr 25, 2016 8:21am
Quoting Hanoverfiste
support and resistance, How far backare the support and resistance levels valid, , lets say on the one hour chart when you minimize the chart to see , days, weeks or months , how far back do we take the S and R levels into consideration ?
Well in my opinion s/r levels drawn on daily chart are the most relevant. But it depends on the pari volatilty actually.
  • #7
  • Apr 26, 2016 6:20am Apr 26, 2016 6:20am
Hi Hanoverfiste

IMO....

Trading on 1 hour chart I would go back to around 6 months S/R levels.
Some points to consider that might help you when trading on 1hr TF.
1 - Go to daily TF and change from candlestick to line-graph
2 - Draw horizontal lines where multiple "nodes" of the the line chart intersect and/or touch the horizontal line
3 - Draw around 4-6 of these lines in the immediate range of the chart. No need to draw lines that are like 5000 pips+ away from the current price
4 - After above 3 steps, go down to 4hr TF and repeat. These lines should be made another color to distinguish between Daily and 4hr S/R levels.
5 - Use hot keys to switch from line chart to candlestick for further confirmation as wicks aren't shown on the line chart. This is an important point to remember when drawing S/R lines as this gives a better picture sometimes. Hot keys are: ALT+3 and ALT+2.
6 - Attached is the latest update version of SR_Zones. Use this indicator (only if you want to) on the 1hr TF. See how our manual S/R lines correspond with the indicators? This is a good sign that you have drawn your S/R lines in the right price zones
7 - The horizontal lines DO NOT have to be 100% to the nearest point or pip. Give some allowance when the zone is triggered, say with a 15pip SL or what you feel comfortable with.
8 - I would defer from doing the above steps on the 1hr chart as the chart will become cluttered with too many S/R levels and mini-zones.
DAILY TF with LINE CHART
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 82 KB


4hr TF with LINE CHART
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 87 KB


4hr TF with CANDLESTICK CHART to show wicks touching S/R levels
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot3.png Size: 89 KB


1hr TF with SR_ZONES indicator
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot5.png Size: 89 KB

Attached File(s)
File Type: ex4 sr_zones.ex4   75 KB | 738 downloads
Ask and you look stupid for 5 minutes. Don't ask and stay stupid forever.
  • #8
  • Apr 27, 2016 4:42am Apr 27, 2016 4:42am
For what it's worth, I was curious whether looking back 1 month, 6 months or 6 years for support and resistance made any difference. As someone who focusses on statistical analysis I put it to the test.

I found no "big" difference between S/R levels looking back 1 month compared to 6 months, and compared to 6 months to 1 year. I didn't look back any further.

All I found was that the S/R levels get slightly more accurate (which makes sense given there's more data to analyse), but they hardly changed at all.

And this supports my gut feeling as well... S/R that existed 5 years ago is going to affect people's decisions on whether to buy / sell... today. And it's a self-fulfilling prophecy as the more times people buy / sell at the S/R points, the more that S/R is repeated and the more it's therefore relied upon.
The price will go up, and down, not necessarily in that order.
  • #9
  • Apr 27, 2016 5:03am Apr 27, 2016 5:03am
Quoting ForexFart
For what it's worth, I was curious whether looking back 1 month, 6 months or 6 years for support and resistance made any difference. As someone who focusses on statistical analysis I put it to the test. I found no "big" difference between S/R levels looking back 1 month compared to 6 months, and compared to 6 months to 1 year. I didn't look back any further. All I found was that the S/R levels get slightly more accurate (which makes sense given there's more data to analyse), but they hardly changed at all. And this supports my gut feeling as well......
I think that it is pretty much true...

I tend to think of them as S/R zones in any case... as the zones usually fill in supply and demand areas as well... (at extremes)
  • #10
  • Dec 18, 2017 5:45am Dec 18, 2017 5:45am
Quoting Hanoverfiste
support and resistance, How far backare the support and resistance levels valid, , lets say on the one hour chart when you minimize the chart to see , days, weeks or months , how far back do we take the S and R levels into consideration ?
I basically use daily time frame in this case! I see, lower time frames are not reliable! In addition, I count the nearest support and resistance levels for my SL and TP.
  • #11
  • Jan 4, 2018 11:49am Jan 4, 2018 11:49am
Quoting EeZeeTrader
Hi Hanoverfiste IMO.... Trading on 1 hour chart I would go back to around 6 months S/R levels. Some points to consider that might help you when trading on 1hr TF. 1 - Go to daily TF and change from candlestick to line-graph 2 - Draw horizontal lines where multiple "nodes" of the the line chart intersect and/or touch the horizontal line 3 - Draw around 4-6 of these lines in the immediate range of the chart. No need to draw lines that are like 5000 pips+ away from the current price 4 - After above 3 steps, go down to 4hr TF and repeat. These lines...
Thank you very much for your detail post and your indicator! Although, I draw the S/R levels ,manually! But, I’ll test your indicator! Hope, it will help me as like your description.
  • #12
  • Jan 5, 2018 8:57am Jan 5, 2018 8:57am
Quoting Hanoverfiste
support and resistance, How far backare the support and resistance levels valid, , lets say on the one hour chart when you minimize the chart to see , days, weeks or months , how far back do we take the S and R levels into consideration ?
First consider your strategy. Trading a trending market or a sideway market (consist of consolidation or channeling)

Next consider your trading time frame. This is where setup are made. Signal where price does a certain movement prompt you to take action.

Day traders use the hourly.

Then consider your primary trend. This could be one time frame higher. This could be the daily chart.

This is where the support and resistance levels matter.

Then base on the setup, reduce your risk via lower time frame and trail your stops.

Session plays a part especially news. They could be the fuel for double or triple the movement and also could be an excuse for market makers to catch stops and add positions. This is evident on higher time frame in a trending market.

Think recent. The rest doesn't matter until there isn't any one nearer.
You're going to pay a price for every bloody thing you do and don't do
  • #13
  • Jan 5, 2018 10:55pm Jan 5, 2018 10:55pm
There is plenty of anecdotal evidence that previous "major" highs do act as resistance when price approaches those levels again. Same for major round numbers in price. If enough market participants are watching a particular level, it can behaviorally become self-fulfilling.
  • #14
  • May 19, 2018 3:30pm May 19, 2018 3:30pm
Quoting Butterscotch
There is plenty of anecdotal evidence that previous "major" highs do act as resistance when price approaches those levels again. Same for major round numbers in price. If enough market participants are watching a particular level, it can behaviorally become self-fulfilling.
Yes, that’s the general procedure; I always observe these kind of important levels so sincerely! By the way, I use horizontal, trend line & fibo for identifying the S/R level.
  • #15
  • May 19, 2018 8:40pm May 19, 2018 8:40pm
15M => daily levels

4H => Weekly levels

1D => Monthly levels


Thats a starting point
  • #16
  • May 23, 2018 1:13pm May 23, 2018 1:13pm
Quoting havo
15M => daily levels 4H => Weekly levels 1D => Monthly levels Thats a starting point
Can you please describe more? I want to know details on this method. Thanks in advance.
  • #17
  • Last Post: May 24, 2018 3:07am May 24, 2018 3:07am
Quoting EeZeeTrader
Hi Hanoverfiste IMO.... Trading on 1 hour chart I would go back to around 6 months S/R levels. Some points to consider that might help you when trading on 1hr TF. 1 - Go to daily TF and change from candlestick to line-graph 2 - Draw horizontal lines where multiple "nodes" of the the line chart intersect and/or touch the horizontal line 3 - Draw around 4-6 of these lines in the immediate range of the chart. No need to draw lines that are like 5000 pips+ away from the current price 4 - After above 3 steps, go down to 4hr TF and repeat. These lines...
Thanks for sharing am testing today and they look good I have set them to daily chart
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